skill gap study for gujarat presentation · 2018-01-10 · •gujarat state horticultural mission...

88
Skill Gap Study for Gujarat Presentation

Upload: others

Post on 28-Jul-2020

1 views

Category:

Documents


0 download

TRANSCRIPT

Skill Gap Study for Gujarat

Presentation

1Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

District Wise Skill Gap Study - Gujarat

(2012-22)

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

2Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

Contents

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

Study Objectives1

Methodology 2

Socio Economic Analysis of the State3

Education and Training Infrastructure 4

Skill Development Opportunities5

Challenges in Skill Development6

Recommendations7

Gujarat

3Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

Contents

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

Study Objectives1

Methodology 2

Socio Economic Analysis of the State3

Education and Training Infrastructure 4

Skill Development Opportunities5

Challenges in Skill Development6

Recommendations7

Gujarat

4Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

The Skill Gap study for Gujarat was commenced with the following Study Objectives

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

Socio-economic profile – demography, economic profile of district by industry, state of education.

Identify developmental opportunities keeping in mind factor endowments and stakeholder perspectives.

Identify specific developmental initiatives/projects which have an impact on employment generation.

Articulate the aspirations of the youth.

Identify the current and future (2012 to 2022) skills and manpower requirements by industry and

estimate the gap that exists

Study the existing VT infrastructure booth in the private sector and the government domain.

Suggest specific and actionable interventions/recommendations to address the skills gap.

Recommendations to include specific initiatives that NSDC can take based on the mandate of the

organization.

Create an action plan with indicative timelines

5Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

Contents

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

Study Objectives1

Methodology 2

Socio Economic Analysis of the State3

Education and Training Infrastructure 4

Skill Development Opportunities5

Challenges in Skill Development6

Recommendations7

Gujarat

6Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

A structured methodology was used to assess the skill gaps and recommend interventions

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

KPMG has adopted a structured methodology to understand the skill ecosystem in

Gujarat, assess incremental manpower needs, and collate insights, to arrive at

recommendations to address the manpower skill gaps in the districts of the state…

Salient Features of the Study

Socio-economic Profile: State/Districts

Sectoral Focus: NSDC priority sectors along with district level potential sectors

Voice of Stakeholders: Capturing insights from stakeholders involved in skill training

Estimation of Manpower Supply: State/Districts

Assessment of Existing Skill Training Capacity: State/Districts

Computation of Incremental Employment Potential: Using a sector specific approach

Manpower Supply-Demand Gap: State/Districts

7Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

The Research Methodology comprised both primary and secondary research, as well as

qualitative and quantitative techniques

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

Primary Research: Primary research inputs were collected through research techniques such as in-depth

discussions, formal interviews, and Focus Group Discussions (FGD). Interview schedules, FGD Guidelines and

points for field observations were developed in accordance to the study objectives. Consultation meetings were

conducted with

• State Government Departments

• District Administration Officials

• Skill Training Providers

• Skill Training Beneficiaries

• Industry Representatives

• Migrant Labour to understand their perspectives on skill development

Activity No.

Primary Interactions withofficials, industry etc

300

FGDs across all districts ofGujarat

26

Youth participated in FGDs 730

Secondary Research: Secondary Data were collected from a number of sources including central, state and

district government/administration agencies, especially the Department of Industries and Department of Planning

and Statistics and program specific information from departments with a mandate in skill training, and from studies

commissioned by funding agencies, NGOs etc

8Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

Methodology

KPMG’s primary interviews have encompassed various government departments at a state level

(1 of 2)…

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

Primary

Study

DE

MA

ND

SU

PP

LY

Index-Tb

State Level

Industrial

Associations

Government

Departments

Sectoral

Development

Boards

Statistics &

Planning

Department

Mode: One-to-one interviews

Capturing

• Historic & projected growth in

investments

• Thrust sectors for

Development

• Education infrastructure

• Skill Development Initiatives

Mode: One-to-one interviews

Capturing :

• Labour Force growth

estimations

9Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

Methodology

…(2 of 2) followed by various officials, associations, industries and youth groups at a district

level

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

Primary

Study

DE

MA

ND

SU

PP

LY

District

Industries

Commissioner

District

Industries

Association

District CED

Officer

District

VTI/ITI/KVKs/N

GOs

Students of ITIs

Youth in Rural

Areas

(Gram Sabha)

Mode :

One-to-one interviews

Capturing :

• Manpower Requirements in Key

Industries

• Current Employment

Generation Outlook

• Historic investments & growth

trends

• Training infrastructure

(Industrial/Services/Agri-Allied)

Mode :

Focus Group interviews

Udisha groups

Capturing :

• Youth Aspirations

• Local education infrastructure

• Local area skills

Key Industries

in the District

District

Employment

Officer

District Rural

Development

Officer

Migrant Workforce

10Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

Methodology

KPMG has adopted different methodologies for estimating sector wise incremental manpower

requirements for different sectors of the economy…

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

Est. district wise/sector wise growth in

output/input

Based on analysis of

• Growth targets from Govt Departments, inputs of

sector wise industry associations

• Achievability of targets from analysis of historic

data and trends

Sector wise/category wise incremental

manpower requirement for 2012-22

Estimated sector wise Manpower intensity

Sector wise/category wise manpower intensity

estimated based on

• Historical trends in employment potential

• Inputs from industry associations/nodal agencies

(Multiplied by)

(Adding manpower requirements

of all districts)

Incremental manpower requirement for

the sector in Gujarat for 2012-22

Key Stakeholders

Inputs from key stakeholders-

• Department of Industries

• Department of Agriculture

• GIDC and nodal bodies/players in high

growth sectors of Gujarat

• Industry Chambers

11Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

Methodology

For Large Scale Industries, the methodology has focused on major industry groups, looking at

industry clusters, SEZs etc

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

Estimated district wise/sector wise investment

during 2012-22 in a district

Sector wise projected investment estimated based on

• Investment targets from state industries

department/GIDC/GIIC/GAIC

• Achievability of targets from interaction with nodal

bodies for identified priority sectors, historical trends

(IEM data)

Sector wise/category wise incremental

manpower requirement for 2012-22

Estimated sector wise Manpower intensity

Sector wise/category wise manpower intensity for

investments estimated based on historical trends for

investment to employment ratio (IEM data) and inputs

from industry bodies.

(multiplied by)

(Adding manpower requirements

of all districts)

Incremental manpower requirement for

the sector in Gujarat for 2012-22

Key Stakeholders

Inputs from key stakeholders- GIDC, GIIC, GAIC

and nodal bodies/players in identified priority sectors

covering SEZs, SIRs, DMIC Region, Industrial

clusters including

• Petroleum and petroleum products

• Chemicals

• Basic Metal Industries

• Electrical Tele & Electronics

• Glass, Ceramic & Cement

• Pharmaceuticals

• Food processing

• Textiles

• Machinery and equipment

• Non-metallic mineral based products

• Plastic and rubber products

• Fabricated metal products

• Auto and auto components

• Gems and Jewellery

• Energy(Conventional/Green)

• Salt Industry

Contribution of major nine industry sectors together

accounted about 79.29 percent in the net value added

as per the ASI - 2009-10 provisional results

12Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

Methodology

Manpower Estimation Approach for Healthcare Sector

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

District wise incremental manpower

requirement in healthcare for 2012-22

Manpower intensity in healthcare institutions

Estimated based on

• Requirement of healthcare professionals

(Number of doctors/nurses/technician per

number of hospital beds)

(multiplied by)

(Adding manpower requirements of all districts)

Incremental manpower requirement for

healthcare in Gujarat during 2012-22

Key Stakeholders

Department of healthcare along with nodal

agencies for

• Primary healthcare

• Secondary healthcare

• Tertiary healthcare

District wise estimated growth of

healthcare institutions during 2012-22

Estimated based on analysis

• Growth targets based on universal healthcare

access targets(number of beds /healthcare

professionals per 1000 population)

• Achievability of targets from proposed

spending allocation, historical growth in

healthcare infrastructure

13Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

Methodology

Manpower Estimation Approach for Agriculture and Allied Activities

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

Key Stakeholders

Nodal Agencies for Individual Allied Sectors

• Gujarat State Horticultural Mission

• Animal Husbandry

• Fisheries Department

* Gujarat contributes 14 percent to 20 percent

share in major fruit and vegetable crops

* Major producer of fish with an estimated

production of 7.75 lakh tonnes during 2010-11

District wise incremental Agri-Allied

workforce during 2012-22

Expected category wise manpower

requirement per unit output

Estimated based on interactions with Nodal

Agencies(manpower requirement per ton fish

production, manpower requirement per litre milk

production)

(divided by)

Total category wise Agri-Allied workforce

in 2012

Analysis of current employment patterns in Agri-

Allied activities

(subtracting)

District wise/category wise estimated

growth in Agri-Allied output size by 2022

Estimated based on analysis of

• Growth targets from Nodal Agencies for key

Allied activities in Gujarat

• Achievability of targets from analysis of historic

growth trends, funding allocation from nodal

agencies.

14Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

Contents

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

Study Objectives1

Methodology 2

Socio Economic Analysis of the State3

Education and Training Infrastructure 4

Skill Development Opportunities5

Challenges in Skill Development6

Recommendations7

Gujarat

15Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

State Analysis

Administratively, Gujarat is divided into 26 districts with Gandhinagar as the state

capital…

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

Gujarat

Districts of Gujarat-26

16Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights ReservedSource :Census 2001, 2011

Demographic Indicators where the State has performed better than India…

• Level of Urbanization

• Literacy Rate (Overall and Across Categories)

• Healthcare Coverage

Other takeaways from Demographic Indicators…

• Gender ratio is slightly on the lower side

• Level of urbanization is high

• Due to certain sparsely populated districts, the average spread of districts is large, and spread of talukas is also larger than the national average – hence showing lower decentralization

Demographic Comparison of Gujarat with India

Indicator Gujarat India

Population in Crores (2011) 6.03 121.01

Gender Ratio- Females Per 1000 Males(2011) 918 940

Percentage of Children in Overall Population(2011) 12.41% 13.12%

Population Density-Persons Per Sq.km(2011) 308 382

Level of Urbanization(2011) 42.50% 31.10%

Decadal Population Growth Rate(2001-11) 19.17% 17.64%

Urban(2001-11) 35.80% 31.80%

Rural(2001-11) 9.23% 12.18%

SC Population % (2001) 7.09% 16.20%

ST Population % (2001) 14.76% 8.20%

Literacy Rate (2011) 79.31% 74.04%

Male (2011) 87.23% 82.14%

Female (2011) 70.73% 65.46%

Urban (2011) 87.58% 84.98%

Rural (2011) 73.00% 68.91%

Number of Villages covered per PHC (2011) 16 27

Number of Villages covered per CHC (2011) 60 133

Number of Districts (2011) 26 640

Average District Area in sq.km (2011) 7,530 4,950

Number of Talukas (2011) 224 5,924

Number of Towns (2011) 153 3,894

Number of Villages (2011) 18,225 6,40,867

State Analysis

While Gujarat has performed better than the national average on several human

resource development indicators, the state also lags on certain others…

17Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

Source :Census, 2011

District Wise Population Distribution (2011 Census)

226, 769

586, 062

590, 379

806, 489

1, 330, 711

1, 342, 746

1, 387, 478

1, 513, 614

1, 550, 822

1, 703, 068

1, 755, 873

2, 027, 727

2, 090, 276

2, 090, 313

2, 126, 558

2, 159, 130

2, 298, 934

2, 388, 267

2, 427, 346

2, 742, 291

2, 877, 961

3, 116, 045

3, 799, 770

4, 157, 568

6, 079, 231

7, 208, 200

The Dangs

Por bandar

Nar mada

Tapi

Navsar i

Pat an

Gandhi nagar

Amr el i

Bhar uch

Val sad

Sur endr anagar

Mahesana

Anand

Kachchh

Dohad

Jamnagar

Kheda

Panch mahal s

Sabar Kant ha

Junagadh

Bhavnagar

Banas Kant ha

Raj kot

Vadodar a

Sur at

Ahmadabad

Regional variations in Population Density

(State Average- 308 Persons per sq.km)

Source :Census, 2011

Top 30 percent of districts account for more than 60

percent of the state population with Ahmedabad and

Surat accounting for a significantly high share…

Population density has significant regional

variations ranging from 46 persons per sq km in

Kutch to 1,376 persons per sq.km in Surat…

State Analysis

Ahmedabad, Surat, Vadodara, Rajkot, Banaskantha, Bhavnagar and Junagadh are

districts with high human resource potential – with over 60% of state population…

18Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

Level of urbanization by district (State Average Level

of Urbanization-42.6%)

Source :Census, 2011

Gender composition of population by district (State

average-918 female per 1000 males)

Source :Census, 2011

State Analysis

The state has a low gender ratio of 918 females per 1000 males, and such low gender

ratio is seen across all levels of urbanization …

Level of urbanization has strong correlation to

population density

Skewed demographic composition is a challenge to

the state, and it should not be allowed to drop further

19Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

Regional variations in literacy composition of

population among the districts (State Average- 79.3%)

Source :Census, 2011Source :Census, 2001

Regional variations in backward classes composition

among the districts(State Average - 22 percent)

Tribal districts of Dahod, Tapi, The Dangs and Narmada have significantly low literacy rates…

State Analysis

Literacy levels in especially low in districts with a high proportion of SC/ST population

- mass education schemes specially focused on these districts are needed…

20Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

State Analysis- Demographic Profile

Proportion of working age population is set to increase steadily to add over one

Crore people to this category during 2012-22 period…

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

Gujarat Demographic Estimations (2012-22)

Source :KPMG Analysis

17, 639, 927 17, 536, 399 16, 920, 347

38, 391, 580 41, 892, 509 44, 620, 592

5, 081, 377 5, 455, 769

6, 686, 266

2012 2017( e) 2022( e)

0- 14 Yr s

15- 59 Yr s

Above 60 Yr s

6.11 Cr6.49 Cr

6.82 Cr

60.51 lakh entrants into working age group

56.67 lakh entrants into working age group

State would experience an

addition of 60.51 lakhs to

working age population

during 2012-17, and

another 56.67 lakhs during

2017-22.

Gujarat is expected to

witness a better

demographic dividend than

national average over the

next decade, and skilling

the new manpower entering

the workforce is crucial to

leveraging this dividend

While job replacements would arise out of replacement of the retirement of the current workforce, additional

manpower entering the workforce needs to be trained considering the future growth trends in industries and

new employment opportunities in Gujarat…

21Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

Economic Performance of Gujarat with India

Indicator Gujarat India

GDP in INR 000’ Cr (At Current Prices-2012) 611 8,353

Net Domestic Product in INR 000’ Cr (At Current Prices-2012) 533 7,476

Per Capita Income in INR Thousands(At Current Prices-2011) 89 61

Monthly Per Capita Consumer Expenditure in INR (NSS 66th

Round, 2009-10)

Rural 1,065 953

Urban 1,914 1,856

Population in BPL Category (NSS 61st Round, 2004-05) 16.80% 27.50%

Primary Sector

Total Cropped Area(h.a) (2007-08) 11,571 1,95,104

Net Irrigated Area(h.a) (2007-08) 4,238 63,196

Area Under Horticultural Land(h.a) (2007-08) 1,054 20,875

Total Livestock in 000s (2007-08) 23,515 5,29,698

Fish Production in 000 tonnes(2009-10) 771 7,853

Value of Mineral Production in INR Cr(2009-10) 13,701 1,87,717

Secondary and Manufacturing Sector

Number of Factories(2010-11) 21,282 2,11,660

Output Value in INR Cr(2010-11) 8,06,783 46,85,213

Industrial Employment in Lakhs (2010-11) 19.12 287.10

Services and Tertiary Sector

Number of Scheduled Banks(2012) 5,076 92,960

Total Road Length in km (2011) 1,46,630 30,47,783

Total Railway Length(2008) 5,328 63,273

Ports(2012) 42 199

Villages Served Per PHC(2012) 16 27

Villages Served Per CHC(2012) 60 133

Source : Directorate of Economics & Statistics, Govt of Gujarat

Economic profile of the state indicates higher

savings and potential investments, with per capita

consumption only marginally higher than the rest of

India, while per capita income is significantly higher

The state lags behind in irrigation with open wells

and bore wells as the major sources of irrigation

responsible for 71 percent of the net irrigated land

State has nearly one fifth of total ports in India, with

41 non major ports and Kandla major port

During the year 2011-12, non-major ports in the

State together handled about 259 million tonnes of

cargo, which accounted for 28 percent of the total

cargo handled by all the ports of India

State has higher proportion of large scale industrial

units resulting in higher per factory output in

comparison to rest of India

Penetration of banking and financial services

measured as available population per bank in

Gujarat stands at a 15,782 as against national

average of 13,379 indicating the low level of

penetration of physical branch network in the state

Gujarat has a better coverage of healthcare

infrastructure with better penetration of CHCs and

PHCs in rural areas

State Economic Profile

Gujarat continues to occupy an important position in the Indian economy (7.39% of

India’s GDP), with very high contributions in specific areas like Ports…

22Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

State Analysis- Economic Profile

Gujarat has achieved balanced growth across the primary, secondary and tertiary

sectors while services sector continues be a major contributor to state economy…

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

Distribution of GSDP among key economic

activities (2011-12) Total- INR 6,11,767 Cr

Gujarat’s Economic Performance (GSDP at Current Prices-

INR Cr)

Source :Directorate of Economics & Statistics, Government of Gujarat

20.6% 20.3% 18.6% 17.9%21.8% 21.8%

37.3%37.3% 37.4%

39.5%

36.8%36.1%

42.2%42.4%

44.0%

42.6%

41.4%

42.1%

283,693329,285

367,912

431,262

530,430

611,767

2006-07 2007-08 2008-09 2009-10(P) 2010-11(Q) 2011-12(Q)

Tertiary Sector Secondary Sector

Agriculture, forestry,fisheries and animal husbandry

18%

Mining and quarrying

3%

Manufacturing27%

Electricity, gas, construction

and water supply

9%

Trade, hotels & restaurants, transportation, sto

rage and communication

24%

Banking & insurance, real

estate, ownership of dwellings and business

services11%

Public administration

and other services

8%

Source :Directorate of Economics & Statistics, Government of Gujarat

Sub Sectoral Growth

Primary- 17.94% CAGR

Tertiary- 16.3% CAGR

Tertiary- 15.85% CAGR

While the state has maintained a balanced economy, contribution of services sector has been higher

Primary sector has witnessed better growth than the other two sectors

Manufacturing, hospitality, retail, transportation & logistics and communications are key non agricultural economic

activities.

23Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

State Analysis- Economic Profile

Manufacturing and services sectors have contributed to higher proportion of overall

employment than national average...

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

Work Force Distribution by Industry Category- Gujarat

Source : NSSO 66th Employment Survey 2009-10, KPMG Analysis

Other Sectors1%

Public administration

2%Education

2%

Other service activities

2%Construction

5%

Transport, storage and

communications6%

Wholesale and retail trade; repair

of motor vehicles, motorcycl

es and personal and household

goods10%Manufacturing

14%

Agriculture, hunting and forestry

53%

Work Force Distribution by Industry Category- India

Public administration

2%

Education3%

Other service activities

2%

Construction10% Transport, storag

e and communications

4%

Wholesale and retail trade; repair

of motor vehicles, motorcycles and personal

and household goods

9%

Manufacturing11%

Agriculture, hunting and forestry

53%

Source : NSSO 66th Employment Survey 2009-10, KPMG Analysis

Manufacturing has contributed to 14% of overall state employment in comparison to national average of 11%

indicating the higher dependency of state workforce on manufacturing related activities

Transportation & logistics, trade & retail, hospitality are among key employment generating segments within

services sector.

24Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

State Analysis- Economic Profile

Unlike many other states of India, Gujarat has witnessed some of its large

industrial investments outside the urban districts...

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

425 524691

860617

369 383 382 496 541373

17, 426 19, 68225, 819

56, 89261, 809

71, 776

121, 852

147, 791141, 021 140, 474

103, 871

0

20000

40000

60000

80000

100000

120000

140000

160000

0

500

1000

1500

2000

2500

3000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Investment i

n IN

R Cr

Number

of Units Proposed

Lar ge Scal e Uni t s Invest ment s

Investment Growth Trend in Gujarat

25

379

631

1,524

1,767

2,565

2,762

3,703

6,014

6,709

8,599

9,442

9,825

10,246

15,257

15,801

23,082

25,431

26,155

26,726

32,409

75,777

97,956

178,609

524,795

Dohad

Narmada

Navsari

Anand

Porban…

Sabar …

Kheda

Tapi

Mehsana

Gandhi…

Patan

Panchm…

Surend…

Bhavna…

Valsad

Ahmed…

Rajkot

Amreli

Junagadh

Banas …

Vadodara

Jamnagar

Surat

Bharuch

Kachchh

Regional Distribution of Investments (INR Cr)

from 2001 to 2012– Total, 10,93,000 Crores

Source :Directorate of Economics & Statistics, Government of Gujarat

Growth of manufacturing and services industries in non

urban regions of Gujarat is attributed to region specific

industrial policies like tax holidays in Kutch...

Source :Directorate of Economics & Statistics, Government of Gujarat

25Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

State Analysis-Economic Profile

Employment opportunities in Gujarat have significant regional and sectoral

concentration indicating the need for specific skilling approach for focus areas..

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

Average Daily Employment in Registered Factories

- Total19.12 Lakhs (2011)

228

994

2, 143

3, 423

4, 902

7, 723

7, 806

9, 690

14, 072

14, 645

18, 585

21, 487

24, 491

24, 637

33, 600

49, 830

52, 252

66, 995

78, 119

108, 892

143, 547

211, 430

244, 390

247, 358

276, 980

Dohad

Nar mada

Pat an

Tapi

Por bandar

Banas Kant ha

Kheda

Amr el i

Sabar Kant ha

Anand

Navsar i

Sur endr anagar

Junagadh

Bhavnagar

Panchmahal s

Jamnagar

Gandhi nagar

Mehsana

Raj kot

Val sad

Vadodar a

Bhar uch

Sur at

Kachchh

Ahmedabad

Textile & Apparel32%

Wooden Products & Furniture

4%

Paper & Paper Products

3%

Chemical & Chemical Products

19%

Rubber & Plastics

4%

Mineral Prosessing & Fabrication

12%

Eletrical & Eletronics

6%

Manufacturing of Engineering

Goods12%

Manufacturing of Construction

Material6%

Drugs and Pharmaceuticals

2%

Category Wise Employment Outlook in MSME

Manufacturing Units

Source : MSME Part-II statistics, Industries Department, Govt of Gujarat

Source :Directorate of Economics & Statistics, Government of Gujarat

Top six districts account for nearly two thirds of the

overall employment in registered factories

Textile & Apparel, Chemical & Chemical

Products, Manufacturing of Engineering Goods and

Mineral Processing & Fabrication contribute to

three fourths of the overall MSME employment

26Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

State Analysis-Economic Profile

Key Growth Sectors and Geographical Presence – Transport & Logistics

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

OverviewGrowth Enablers &

Developments

Geographical

Concentration

Organized logistics dominated by port based logistics

High growth after Gujarat Maritime Board

incorporation (2001)

Shipbuilding policy( 2010) a big governmental thrust

Pipav Shipyard, Alang Recycling Yard, Chemical and

LNG Terminals in Dahej and VTMS are key

Gujarat Maritime Board (GMB) manages 41 non-

major ports with a traffic handling capacity of 342

MMT (2011-12) accounting for 37% of total cargo

handled in Indian ports

Private port traffic has grown at CAGR of 24 % from

2006-07 to 2011-12

During Vibrant Gujarat summit (2011), 97 MoUs

signed in ports sector with investment of Rs.

1,02,899 Cr to increase cargo handling capacities by

660 million tonnes by 2015-16

Long costal line of 1600

km, and a gateway for land-

locked states of North

Growth driven by favourable

export policies and industrial

activity over the next decade

Growth measures being

adopted: Private/ Joint

Sector Ports, Private

Jetties, Captive Jetties and

GMB Jetties, identification of

10 regions for new ports

Initiatives of Ro-Ro

Ferry, Port

connectivity, Shipbuilding

park, Development of port

cities(Mundra)

Key Ports-

Pipav, Dahej, Kandla,

Mundra, Hazira

Captive Jetties -

Hazira, Sikka, Dahej,

Muldwaraka, Pipavav,

Okha, Mandvi.

Private Port

locations-

Mundra, Hazira, Dahej

, Dholera and

Poshitra, Simar, Vansi-

Borsi, Nargol, Bedi

along with

Kachchigadh, Mahuva,

Khambhat, Dahej

(north of DHIL jetty)

and Modhawa

27Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

State Analysis-Economic Profile

Key Growth Sectors and Geographical Presence – Chemical & Chemical Products

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

Overview Growth Enablers & DevelopmentsGeographical

Concentration

Rationalization of tax regime, power

reforms, SEZ development, and proximity

to Middle East gas resources, are key

growth factors

Petroleum, Chemical & Petrochemical

Investment Region in Dahej, with estimated

investment of Rs. 50,000 Cr and

direct/indirect employment to 1.9 lakh

Established distribution gas network and

LNG terminals at Hazira and Dahej have

led to a strong base of chemical and petro

chemical products

IIFCO, KRIBHCO, power companies like

NTPC and GEB and industrial majors like

Reliance are key players

Estimated foreign investment of INR

12,000 Cr into the sector during Vibrant

Gujarat 2013

Support infrastructure of sector specific

SEZs in Jambusar, Padraa & Dahej

Estimated to touch USD 70 Billion by

2017 riding on high growth of specialty

and fine chemicals segment

Gujarat expected to achieve nearly two

thirds of foreign investments into the

industry in India over the next five years

Dahej attracting investments from

leading global players like GK Co of

South Korea though JVs

US-based Styron Solutions, Eastman

Chemical Company and Heubach

Corporation expected to invest

LNG and chemicals terminals in Dahej

expected to drive the growth of petro

chemical processing units in Gujarat

Dahej is the chemical

industry hub in

Gujarat

Jamnagar refinery is

largest in India

Oil & gas reserves

located at

Ankleshwar, Mesana,

Tapti High, Hazira,

Bharuch, Gandhar,

Dahej, Jambussar,

Palej, Kalol

Dholka and Khambat

oil reserves expected

to drive growth of

refining & allied petro

chemical industry

28Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

State Analysis-Economic Profile

Key Growth Sectors and their Geographical Presence - Textiles

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

Overview Growth Enablers & DevelopmentGeographical

Concentration

Occupies a key position in the state economy and

contributes to over 6% of the total industrial production

Growth of the industry in Gujarat has been a recent

phenomena started from the beginning of 21st century

Textile policy provides capital and operational

incentives including margin money subsidy, interest

subsidy, interest reimbursement and capital subsidy

Adopted 5F model - Farm to Fibre to Fabric to Fashion

to Foreign - as strategic outline for Government thrust

Textile policies, proximity to ports, other modes of

transport, liberal labour policies, availability of low cost

raw material, and well developed textile machinery

industry are key growth drivers

Lower cost of real estate in Gujarat made available

through SEZs and textile parks in districts such as

Kutch, is another growth enabler

FDI flow over the next decade

expected from several countries

Gujarat is the largest producer

and exporter of Cotton

Technical and Power loom

textiles is a key segment

expected to witness significant

growth over the next decade

from the current base of 860

units in 2009-10

State manufacturing policy has

ensured adequate measures to

provide skilled workforce to

manpower intensive textile

units, with the policy targeting to

train nearly 3 Mn youth in the

sector, over the next five years.

Surat is a

traditional textile

and apparel hub

in India

employing over 3

lakh people in

small to large

units

Ahmedabad,

Rajkot, Kutch,

Valasad,

Gandhinagar,

Bharuch,

Valasad and

Navsari are other

focus regions for

textile units in

Gujarat

29Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

State Analysis-Economic Profile

Key Growth Sectors and their Geographical Presence – Auto & Auto Components

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

Overview Growth EnablersGeographical

Concentration

State government has embarked series of

measure to drive the growth of Auto

industry through conducive policies

Sanand Auto cluster is emerging as a

destination for growth of the industry

Port-based assembling and pre-export

operations in the ports of Kutch district

(Mundra) have helped growth of auto

assembling /testing operations in the state

State has witnessed investments of INR

2,500 Cr (Tata), INR 4,000 Cr (Maruti),

INR 2,500 Cr (Peugeot) and INR 4,000

Cr (Ford) from major auto companies.

Renault-Nissan, Honda Motorcycles, Bajaj

Auto and Hero MotoCorp, AMW

companies are in various phases of

expanding in Gujarat

Tax holidays, special incentives and

available land (5000 acres) in the auto

cluster of Sanand

Growth potential for ancillary

industries around Sanand

Strategically located on Delhi-Mumbai

Infra Corridor providing Rail and Road

network and proximity to ports for

exports.

Various fiscal and non-fiscal benefits

provided to reduce project costs for

the special investment region of

Sanand

Auto component industry is expected

to witness a 20-30% CAGR over the

next five years riding on huge

investments in OEM segment

Sanand city in

Ahmedabad district is the

auto hub with Auto giants

Tata, Ford and PSA

Peugeot establishing

their manufacturing

plants in the region

Availability of port

infrastructure for export

has helped the growth of

auto assembling and

testing operations in port

city of Mundra.

Surat and Vadodara are

other important urban

clusters with several

ancillary auto units

30Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

State Analysis-Economic Profile

Key Growth Sectors and their Geographical Presence – IT and ITES

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

Overview Growth EnablersGeographical

Concentration

IT/ITES has been identified as a focus growth sector and

the state IT Policy reflects governmental thrust:

Provision of employment to 200,000 persons

Identification of land for IT Industry/Parks

Assistance to IT industry for land acquisition

Advisory to Municipal Corporations for designing

town planning schemes to accommodate IT parks

Grant of SEZ status to IT Parks

Plans to provide capital subsidy to new IT units, turnover

incentives for IT units and reduction of sales tax for

purchase of computer hardware and peripherals

14 locations identified in 2010, for the growth of the sector

through sector specific SEZs

As on 2012, the state has 1 operational IT & ITES SEZ

along with 6 SEZs in formal approval stage and 7 notified

Conducive policy thrust

through special infrastructure

and fiscal, non fiscal

incentives

Capacity of over 1,10,000 in

Engineering & Diploma

colleges, ensures availability

of technical manpower

19 MoUs (worth Rs 46,007

Cr) during Vibrant Gujarat

Summit 2009 and another 15

MoUs in the 2013 Summit,

have been signed with IT-

ITES players

For locations identified for IT

& ITES development,

infrastructure development is

to be complete in 5-10 years

Fourteen SEZs

identified in the

state:

•Four in

Gandhinagar

•Six in

Ahmedabad

•Three in

Vadodara

•One in Valasad

31Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

State Analysis-Economic Profile

Key Growth Sectors and their Geographical Presence

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

Sector Growth Enablers for the industry Geographical Concentration

Food

Processing

Gujarat boasts of being the leader in exports of processed food and

vegetables in India with a strong base of 3,700 small scale and 150 large

& medium scale food processing units. Companies such as ITC, Amul,

Hindustan Lever, McCain have explored the potential of this sector in

Gujarat.

Gujarat offers a large number of incentives to set up food processing units.

Hassel free policies such as single window clearance, a strong agricultural

marketing network with over 200 Agricultural Produce Marketing

Committees (APMCs) and over 110 cold storages are some of the

enablers that have facilitated the rapid growth of this industry.

Ahmedabad, Bhavnagar. Bharuch,

Gandhinagar, Banas Kantha, Sabar

Kantha and Anand

32Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

State Analysis-Economic Profile

Key Growth Sectors and their Geographical Presence

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

Sector Growth Enablers for the industry Geographical Concentration

Banking &

Financial

Services

Government has undertaken measure to boost the growth of financial

services activities through sector specific SEZs like Ahmedabad Financial

City.

Disposable income growth over the next decade would drive the

penetration of financial services in urban and semi urban regions.

Banking inclusion targets are expected to drive the growth of banking

infrastructure in rural and under penetrated regions.

Ahmedabad, Surat, Rajkot, Vadodara

and Gandhinagar

33Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

State Analysis-Economic Profile

Key Growth Sectors and their Geographical Presence

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

Sector Growth Enablers for the industry Geographical Concentration

Hospitality

and Tourism

The tourism in Gujarat has been driven by the Tourism Corporation of

Gujarat Limited (TCGL) which has setup Gujarat Tourism Opportunities

Limited (GUJTOP) for development of tourist sites and Guj-Tour

Development Company Ltd (GUJTOUR) to develop, create and market

tourism-related infrastructure and projects.

The budgetary allocation towards tourism sector increased from 183 crore

in FY11 to 200 crore in FY 12.

Kutch, North Gujarat , Ahmedabad,

Saurashtra and South Gujarat tourism

clusters

Urban industrial clusters like

Ahmedabad, Surat, Vadodara and

Rajkot

Healthcare While coverage of healthcare infrastructure in rural areas would receive

significant Government thrust, urban regions would have private

participation considering the affordability of healthcare services by urban

population

Surat, Ahmedabad and Vadodara

34Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

Contents

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

Study Objectives1

Methodology 2

Socio Economic Analysis of the State3

Education and Training Infrastructure 4

Skill Development Opportunities5

Challenges in Skill Development6

Recommendations7

Gujarat

35Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

State Analysis

Dropout rates across education levels is a concern that needs to be addressed,

allowing a seamless transition into vocational education, is a key means to do this…

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

Enrollments in Gujarat Across Education Levels

Source :KPMG Analysis

Penetration of Higher Education in Key Indian

States (Enrollments per 1000 Population)

10.3

12.4

12.8

14.0

14.8

16.4

17.4

20.5

21.8

West Bengal

Uttar Pradesh

Madhya Pradesh

All India Average

Gujarat

Karnataka

Maharashtra

TamilNadu

Andhra Pradesh

Source : MHRD Statistics 2012

Capacity of higher education in Gujarat at 14.8 seats per 1000 population is only marginally better than national

average of 14 seats per 1000 population. Gross Enrollment Ratio in Gujarat is 15.9% (2009-10) while the average in

India is 15%, and the average in developed countries is often above 50%

The international best practice followed in the education system, is to allow seamless transition of students at various

stages (from secondary school onwards) into vocational education streams. In order to facilitate this, vocational

education curriculum is incorporated in education at the schooling stage itself

36Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

Education and Training Infrastructure- Training Capacities

Vocational education can play the crucial role of bridging the gap in the current

education system to create a skilled economy…

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

Category of Institutions Number of Institutions

Universities, Research

Institutes, Institutes of National

Importance

62

Govt Colleges 71

Grant in Aid Colleges 356

Self financed institutions 605

Total 1,094

Category of Institutions No. of Institutions Intake

Engineering Degree 114 53,773

Engineering Diploma 102 56,918

MBA 132 13,365

Degree Pharmacy 80 5,005

Total 428 1,29,061

Category of Institutions No. of Institutions Intake

ITIs 263 1,01,973

ITCs(Govt Aided) 448 14,864

VTPs(Private) 575 21,269

Private Training

Institutes(NSDC Partners)

69 4,314*

Total 1,355 1,42,420

Source : Gujarat Higher education Commission

Source : Gujarat Technical Education Statistics, 2012

Source : Directorate of Labour & Training Gujarat

Higher Education Institutions

Technical Education Capacity

Vocational Education Capacity

As per 2009-10 estimates, while Gujarat has a

marginally higher GER (15.9%) than India (15%), it is

significantly lower than leading economies like

USA(84%), UK(59%),Japan (55%) and China (28%)

Engineering diploma/degree account for a major

share of technical education capacity of 1.29 lakhs

Prevalence of vocation education measured as ratio

of vocational education to technical education

capacity (nearly 1:1) is lower than required levels,

considering the segmentation of employment

opportunities (Skilled : Semi skilled), and also

considering the same ratio in countries like Germany,

Japan etc with a strong vocational education system

State has to focus on initiatives to improve private

participation in vocational education from current level

of 26 percent, in terms of seat capacities, through

innovative PPP schemes etc

NSDC partner institutes have established significant

presence in the state with 69 centres across Gujarat:

AISECT (40), B-ABLE (7), Empower Pragati (5),

GTVE GOLS (9), Laurus Edutech (3), IL&FS (1), IIJT

(2), Future Sharp Skills (1) and Labour Net (1)

*Trained in 2012-13

37Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

Education and Training Infrastructure- Vocational Education

Regional variations in vocational training capacities indicates a need for geographical

focus towards capacity expansion…

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

Penetration RegionNo. of ITI/

ITCs/VTP

Seat

Capacity

NSDC Partner Vocational

Training. Density*Institutes Capacity

High

Navsari 15 6,125 4.60

Bharuch 21 6,256 3 886 4.03

Sabar Kantha 47 8,382 5 87 3.45

Gandhinagar 29 4,666 2 26 3.36

Mahesana 37 6,377 3.14

Panchmahals 45 7,488 3 247 3.14

Medium

Kheda 31 6,803 5 188 2.96

Junagadh 63 8,051 1 28 2.94

Dohad 38 5,770 2 221 2.71

The Dangs 1 600 1 45 2.66

Amreli 18 3,940 2.60

Surendranagar 27 4,356 2.48

Tapi 7 1,930 2.39

Kachchh 19 4,712 2.25

Vadodara 48 9,168 4 143 2.21

Patan 12 2,952 2.20

Jamnagar 17 4,656 2.16

Anand 29 4,230 2 24 2.02

Low

Valsad 11 3,319 3 173 1.95

Banas Kantha 32 5,676 1 80 1.82

Rajkot 36 6,920 1 43 1.82

Ahmedabad 61 12,141 24 1926 1.68

Narmada 6 932 2 156 1.58

Bhavnagar 28 4,346 1 21 1.51

Surat 30 7,750 1 20 1.27

Porbandar 3 560 0.96

Gujarat 711 138,106 61 4,314 2.36 Source : Directorate of Labour & Training Gujarat, NSDC

* Measured as seats per 1000 population

Densely populated industrial

clusters of Ahmedabad,

Vadodara, Surat and Rajkot

have significantly lower

penetration of vocational

education.

Regional variations in

capacities with industrially

backward districts having

high penetrations

State needs to formulate

conducive policies and

special incentive schemes

to enable private

investments in vocational

education in low penetration

districts

NSDC partners largely

concentrated around urban

and industrial clusters like

Ahmedabad and Bharuch

38Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

Education and Training Infrastructure-Government Initiatives

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

Government

Scheme

Scheme Details/Objectives Performance

Private Universities

Bill

Government of Gujarat has passed the Private

Universities Bill in 2009 allowing the formation of

private universities without having to pass

legislation through the Assembly.

Any private institution applying for a private

university would be evaluated by the Department

of Education and would amend the schedule of

the Private Universities Bill on meeting eligibility

criteria.

Gujarat has witnessed establishment of 10 are

private universities (6 already existing and 4 new

have been approved and will commence operations

soon) supported by the conducive policy.

In 2013, amendment to the bill for approving three

more universities-Lakulish Yoga University in

Ahmedabad, Team Lease Skills University-ITI at

Tarsali in Vadodara, and CU Shah University in

Wadhwan has been approved.

Skill Development

Promotional

Schemes under

Industries

Government of Gujarat has initiated promotional

schemes through Center for Entrepreneurship

Development (CED) in 2009-10 aimed at increasing

private participation in vocational education. Schemes

for

(i) Setting up extension centers/Skill Up gradation

Centers(SUCs) at GIDC estates, ITI premises,

industrial clusters, industrial parks, SEZs,

investment regions with capital expenditure

support to a maximum of 1 Cr

(ii) Specialized Skill Development Centers providing

financial assistance towards capital expenditure

(building/land/equipment) under a maximum limit

of 1 Cr are currently undertaken by the

Government.

Prominent private vocational institutes including

NSDC partners have setup training centers in

Gujarat under these schemes. Currently there are

49 approved SUCs in the state which have

conducted 156 training programs training 4282

trainers till date.

Eleven proposals have been approved for SDCs

with prominent industrial players and training

institutes like Apollo Tyres, ABG Shipyard and

Ahmedabad Textile Industry’s Research

Association (ATIRA). SDCs in the state have

conducted 98 training programs training 2123

trainers till date.

39Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

Education and Training Infrastructure-Government Initiatives

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

Government

Scheme

Scheme Details/Objectives Performance

Promoting

Industrial

Participation in

Education and

Training

Government of Gujarat has initiated promotional scheme in 2009-10

through Center for Entrepreneurship Development (CED) for

running Short Term Bridge Courses in PPP mode.

This scheme provides interested industrial players with options to

either run existing courses or implement special programs in

partner institutes with a maximum cap on quantum of assistance-

INR 1 Cr

Currently seven PPP initiatives have been

approved with players including General

Motors, Tata Motors Pvt Ltd and Powai Labs

which have offered 5 training programs

training 110 trainers till date.

Introducing

Flexible

Curriculum-

Choice Based

Credit System

(CBCS)

State has implemented measures to provide flexibility in curriculum

selection for students across levels of education by introducing Choice

Based Credit System (CBCS) allowing students to choose courses as

electives from different streams in UG/PG programs. The system permits

student to

Learn at their own pace

Choose electives from a wide range of courses

Undergo additional courses and acquire more than required number

of credits

Adopt an interdisciplinary approach in learning

Inter college/University transfer of Credits

Complete a part of programme in the parent institute and get

enrolled in another

institution for specialized courses

Enhance skill/employability by taking up project work,

entrepreneurship and vocational training.

Carry on and transfer their credit

Make best use of the expertise of available faculty.

State Universities implemented Choice

Based Credit System at Postgraduate

level from the academic year 2010-11.

It was implemented at Undergraduate

level at Saurashtra University, Sardar

Patel University, and Bhavnagar

University and in the faculty of Science

at M.S.University of Baroda.

State Government has proposed to

implement the CBSE across all higher

education institutes.

40Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

Education and Training Infrastructure-Government Initiatives

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

Government

Scheme

Scheme Details/Objectives Performance

Improving

Quality of

Education

State Government in Gujarat has initiated various measures aimed at enhancing the

quality of learning at higher education institutes like

Introducing ICT in teaching and learning processes in classrooms through

initiatives like SANDHAN

Introduced Academic and Administrative Audit (AAA) to monitor the quality of

higher education institutions

Initiated implementation of TEQUIP-I in technical education institutions

University Granth Nirman Board- Providing quality educational resources in local

languages at affordable prices

Setting up of GEIC(Gujarat Educational Innovations Commission) with district,

block and cluster level cascading structure integrating schools with higher

education to promote the innovation in education

SANDHAN initiative offers VSAT

enabled classes for 12 hours a day

with courses ranging from English,

Sciences, Employability areas

AAA has developed a successful

model for evaluating institutions

comprehensively with a scaling

system providing weight ages to

Academic Information, Systems &

procedures, Administration and

Government initiatives in Higher

Education

Improving

Employability

of Students

Employability enhancement measures through initiatives like UDISHA (Universal

Development of Integrated Employability Skills through Higher Education Agencies)

and finishing school, language training programs (SCOPE) are undertaken by the state

Government.

Initiated in 2008 UDISHA is targeted to improve employability of students in

higher education institutes across Gujarat by organizing career development

programs, training for the clubs through faculty in charges

Technoseva and Viswakarma Yojana provide earning opportunities to students by

engaging them in social sector projects in rural and urban areas

SCOPE- To youth in English proficiency through PPP and education institutions

Started in 2008 emPower provides basic computer training to youth in schools,

higher education institutions, ITI s/ ITPs and also through employment exchanges,

KVKs (Kaushal Vikas Kendras) and PPP.

Currently there are established

UDISHA groups in all district

regions and metro clusters.

SCOPE has targeted plans to train

5 lakh youth in the next five years

KVK initiative has trained over 3.3

lakh youth till 2012

41Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

Education and Training Infrastructure-Government Initiatives

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

Government

Scheme

Scheme Details/Objectives Performance

Anchor

Institutes

Government has started Anchor Institutes initiative through CED in 2009 providing

financial assistance to support research and faculty training in respective sectors. Role of

the Anchor Institute

To focus on enhancing technical and managerial competence of manpower in the

respective sectors, through appropriate training programs

To collect information on sectoral courses ( all levels – ITIs, UG, PG) offered and

review them for any up gradation required for making it industry responsive

To suggest introduction of short term skilling courses for those already working in

the industry

To prepare teaching and learning material for skill training programs

To constantly interact with industry and introduce new training programs of high

standards

To provide an opportunity for students pursuing courses in the sector to interact with

industry professionals by encouraging student-industry interaction forums

To encourage faculty to undertake industrial research and consultancy activities, so

that they stay abreast of the industry developments

To appoint, not more than 3, support institutions per sector across the state to

support in performing its activity efficiently

A review committee headed by IIT Gandhinagar is set up to monitor the performance of

the anchor institutes.

Six Anchor Institutes have

been selected under the

scheme in Engineering

and Auto, Gems &

Jewellery, Textile,

Garment & Apparel,

Plastic and Packaging,

Chemical and

Infrastructure.

Each Sector (Anchor/Co-

Anchor Institutes) are

eligible for a maximum

capital and operational

support of INR 10 Cr.

Across sectors around

400 training programs

have been conducted

training over 10,000

trainers/students till date.

42Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

Education and Training Infrastructure-Government Initiatives

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

Government

Scheme

Scheme Details/Objectives Performance

Setting up of

Gujarat Skill

Development

Mission

Government of Gujarat has setup GSDM as a non delivery

function entity to coordinate and strategize the skill

development initiatives in the state. Key objectives for

setting up the Gujarat Skill Development Mission include

Develop an integrated strategy for enhancing the

employability of youth in the state

Undertake survey/research to identify existing skill

gaps

To make a comprehensive skill development strategy

for the state

To disaggregate the skill development targets skill

wise and beneficiary wise

To allocate activities of strategy formulated among

various departments- Labour & Employment,

Education Department, Urban Development, Cottage

Industries Department , Rural Development

Department etc.,

To monitor the performance of schemes for impact and

achievability of targets

Skill Development mission has successfully

implemented skill voucher scheme in the state. from

2012-13. In the first year around 20, 000 skill

vouchers of value between Rs 2500 to Rs 5000 are

expected to be distributed.

While the scheme is still in the initial stages of

implementation, robust monitoring systems and

simple procedural aspects have potential to make

the scheme replicable across India. Key features of

the program are

Funding entities will

identify the beneficiary, get a skill voucher in

his/her name and hand it over to the

beneficiary.

Institute training the candidate can claim the

money upon successful completion of course of

his choice

If the candidate fails to undergo

training/evaluation money goes back to the

funding entity.

GSDM just stands as a guarantor to the

funding agency that the money will not go

waste.

43Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

Education and Training Infrastructure-Government Initiatives

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

Government Scheme Scheme Details/Objectives Performance

Accessible training for

women and school

dropouts through KVKs

(Kaushalya Vardhan Talim

Kendra )

KVKs are intended to address the issue of accessibility of

training facilities for rural population, especially women by

running life skills, O & M of Micro irrigation equipment, Battery

maintenance, clay work, ladies tailor, agriculture implements

repairer, cloth doormat, zardozi work courses in available

Govt. buildings, Panchayat buildings or rented spaces.

From 2008 over 3,91,997 candidates have been

trained till May-2012, out of which 2,27,973 are

women indicating the high level of inclusiveness in

these training programs

MoU with International

Institutes for Skill

Development

Collaborations will provide the framework within which detailed

proposals for programs for establishment of International

Centre of Excellence, skills development , education,

research, training van be undertaken.

Interaction between the parties would be jointly considered on

the basis of reciprocity and mutual benefit.

Gujarat government inked pact with Kangan Institute

of Victoria, Australia, for skill development in

automotive sector in 2013.

As a part of the agreement, board of Kangan institute

will jointly work with partners such as Maruti Suzuki,

Ford Motors, GMDC and IIT Gandhinagar under the

umbrella of International Automotive Centre of

Excellence (i-ACE) to promote skill development in

automotive sector

Vertical Integration of

Vocational and Higher

Education

Government of Gujarat has proposed to integrate vocational

education with higher education where a two-year ITI diploma

certificate would be equivalent to Class 12th certificate.

ITI certificate-holders would be eligible for admission to higher

education institutes like engineering colleges.

This scheme is yet to be operational.

44Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

Education and Training Infrastructure-Government Initiatives

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

Government

Scheme

Scheme Details/Objectives Performance

Improving

Employability of

Students

Employability enhancement measures through initiatives like UDISHA (Universal

Development of Integrated Employability Skills through Higher Education

Agencies) and finishing school, language training programs (SCOPE) are

undertaken by the state Government.

Initiated in 2008 UDISHA is targeted to improve employability of students in

higher education institutes across Gujarat by organizing career development

programs, training for the clubs through faculty in charges

SCOPE- To youth in English proficiency through PPP and education

institutions

Started in 2008 emPower provides basic computer training to youth in

schools, higher education institutions, ITI s/ ITPs and also through

employment exchanges, KVKs (Kaushal Vikas Kendras) and PPP.

Currently there are

established UDISHA

groups in all district

regions and metro

clusters.

SCOPE has targeted

plans to train 5 lakh

youth in the next five

years

KVK initiative has trained

over 3.3 lakh youth till

2012

Budget Thrust

2013-14, Gujarat

Government

Gujarat has taken an initiative of creating Skill University.

Government has planned to create Gujarat Skill Development Corporation with a view to prepare industry‐

responsive skilled youth that will meet the requirements of different industrial sectors like chemicals,

petrochemicals, ports, infrastructure, engineering, textiles and information technology.

A provision of INR 116 crore is made for strengthening and modernization of it is.

A provision of INR 20 crore is made for providing apprenticeship stipend to approximately 40,000 youngsters

trained at ITIs.

A provision of INR 26 crore is made under eMPOWER with a view to provide computer training to 2.25 lakh

youngsters of the State.

A provision of INR 19 crore under UMEED Programme to train approximately 1 lakh youngsters of the Urban

Poor for employment.

A provision of INR 9 crore is made with a view to create a fund for The Modular Employable Skill in

association with industries

45Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

Contents

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

Study Objectives1

Methodology 2

Socio Economic Analysis of the State3

Education and Training Infrastructure 4

Skill Development Opportunities5

Challenges in Skill Development6

Recommendations7

Gujarat

46Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

Skill Development Opportunities(2012-22)

Along with primary sector, transportation & logistics, banking and financial services,

hospitality would account for nearly three fourths of the overall employment...

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

Source : KPMG Analysis

Incremental Manpower Requirement (2012-17) Incremental Manpower Requirement (2017-22)

Sector Skilled Semi Skilled Minimally

skilled

Total Skilled Semi Skilled Minimally

skilled

Total

Transportation & Logistics 17976 285441 339601 643019 14707 233543 277856 526106

Agriculture & Allied Activities NA NA 426677 426677 NA NA 357322 357322

Construction 13392 26785 227669 267846 11979 23957 203635 239570

Banking & Financial Services 64000 192000 NA 256000 44800 134400 NA 179200

Hospitality & Tourism 24963 37445 187223 249630 19970 29956 149778 199704

Trade, Retail 21632 32447 162237 216316 23646 35469 177347 236463

IT-ITES 60000 150000 NA 210000 50000 120000 NA 170000

Education & Training 24116 162346 NA 186462 36174 97408 NA 133581

Textile & Apparel 16564 66254 82818 165635 14815 59260 74075 148150

Chemical & Chemical Products 9692 38769 48461 96922 8669 34676 43345 86690

Healthcare 12080 54359 NA 66438 16093 80466 NA 96559

Mineral Processing & Fabrication 6471 25884 32355 64710 5788 23152 28939 57879

Manufacturing of Engineering Goods 5990 23962 29952 59904 5358 21432 26790 53580

Agro & Food Processing 3655 14619 18273 36547 3272 13089 16362 32723

Electrical & Electronics 3192 12769 15962 31924 2855 11421 14277 28553

Manufacturing of Construction Material 2885 11541 14426 28853 2581 10323 12904 25807

Rubber & Plastics 2266 9063 11329 22658 2027 8106 10133 20266

Misc. Manufacturing 2263 9051 11314 22627 2024 8095 10119 20239

Wooden Products & Furniture 1801 7004 10205 19010 1671 6336 9407 17414

Paper & Paper Products 1358 5431 6789 13578 1214 4858 6072 12145

Drugs and Pharmaceuticals 1168 4670 5838 11676 1044 4177 5222 10443

Total2,95,420 11,69,685 16,30,943 29,56,901 2,68,654 9,34,784 14,32,025 26,52,023

47Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

Skill Development Opportunities(2012-22)

Industrial clusters of Ahmedabad, Surat, Rajkot, Vadodara and Kutch are expected

to generate a large portion of incremental employment opportunities in the State...

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

District

Incremental

Manpower

Requirement

2012-22

Focus Sectors in Districts of Gujarat

Agri

culture

&

Alli

ed

Agro

& F

ood

Pro

cessin

g

Textile

&

Appare

l

Wooden

Pro

ducts

&

Furn

iture

Paper

& P

aper

Pro

ducts

Chem

ical &

Chem

ical

Pro

ducts

Rubber

&

Pla

stics

Min

era

l

Pro

cessin

g &

Fabri

cation

Ele

ctr

ical &

Ele

ctr

onic

s

Manufa

ctu

ring

of E

ngin

eeri

ng

Goods

Manufa

ctu

ring

of C

onstr

uction

Mate

rial

Dru

gs a

nd

Pharm

aceutica

ls

Mis

c.

Manufa

ctu

ring

Constr

uction

Tra

de, R

eta

il

Tra

nsport

ation

& L

ogis

tics

IT-I

TE

S

Hospitalit

y &

Touri

sm

BF

SI

Healthcare

Education &

Tra

inin

g

Ahmedabad 748,197

Surat 707,504

Vadodara 485,337

Rajkot 373,826

Kutch 286,496

Valasad 249,117

Bhavnagar 247,421

Gandhinagar 229,728

Bharuch 228,614

Kheda 202,376

Mehsana 200,231

Banas Kantha 192,047

Junagadh 191,875

Jamnagar 185,436

Sabar Kantha 176,527

Panchmahals 160,135

Anand 140,724

Surendranagar 132,233

Dahod 121,242

Navsari 113,398

Amreli 105,311

Patan 85,094

Porbandar 52,541

Tapi 52,239

Narmada 48,352

The Dangs 32,828

48Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

Skill Development Opportunities(2012-22)

Gujarat will have an excellent demographic dividend for years to come, with the

state labour force expected to reach nearly 260 million by 2022...

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

Expected Demographic Composition Transformation in Gujarat

2017 2022

Source : KPMG Analysis

•Labour Force: Number of people employed or seeking employment in Gujarat

•Work Force: Number of people employed in Gujarat

•Working Age Population: Number of People in the 15-59 age Group

Total Population

649 lakhs

Working Age Group Population

419 lakhs

Labour Force243 lakhs

Work Force

231 lakhs

Total Population

682lakhs

Working Age Group Population

446 lakhs

Labour Force

259 lakhs

Work Force

246 lakhs

49Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

Skill Development Opportunities(2012-22)

State is expected to witness a gross addition of 35.53 lakhs and 33.36 lakhs during

2012-17 and 2017-22 periods to the labour force…

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

Labour Force Supply 2012-17 Labour Force Supply 2017-22

Region

Gross Addition to

Working Age

Population

Gross Addition to

Labour Force

Net Addition to

Labour Force-

Supply

Gross Addition to

Working Age

Population

Gross Addition to

Labour Force

Net Addition to

Labour Force-

Supply

Gujarat 6,051,859 3,553,511 2,041,412 5,667,176 3,336,960 1,585,016

Kachchh 200,506 95,295 58,158 219,075 101,138 45,156

Banaskantha 371,356 214,245 104,882 368,150 209,703 81,434

Patan 150,654 99,015 51,192 137,952 92,064 39,747

Mahesana 204,983 138,966 79,569 179,565 124,973 61,780

Sabarkantha 255,224 163,435 90,320 250,323 161,398 70,127

Gandhinagar 149,895 99,164 53,237 127,768 85,902 41,334

Ahmadabad 621,668 285,647 192,997 599,899 273,742 149,849

Surendranagar 196,756 119,975 62,191 180,122 110,788 48,287

Rajkot 338,798 183,119 119,548 320,481 172,910 92,821

Jamnagar 216,295 121,793 70,519 196,327 112,300 54,753

Porbandar 59,866 36,474 20,659 51,111 32,039 16,040

Junagadh 289,452 175,045 96,115 243,561 150,229 74,627

Amreli 153,029 100,860 57,697 133,421 90,641 44,798

Bhavnagar 317,500 172,242 90,720 286,459 156,483 70,438 Source : KPMG Analysis

50Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

Skill Development Opportunities(2012-22)

State is expected to witness a gross addition of 35.53 lakhs and 33.36 lakhs

during 2012-17 and 2017-22 periods to the labour force…

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

Source : KPMG Analysis

Labour Force Supply 2012-17 Labour Force Supply 2017-22

Region

Gross Addition to

Working Age

Population

Gross Addition to

Labour Force

Net Addition to

Labour Force-

Supply

Gross Addition to

Working Age

Population

Gross Addition to

Labour Force

Net Addition to

Labour Force-

Supply

Anand 204,570 127,216 75,362 187,353 118,634 58,513

Kheda 236,245 154,598 87,227 214,336 142,759 67,726

PanchMahals 269,503 182,042 93,808 260,708 176,672 72,836

Dohad 257,486 161,955 78,233 283,596 174,005 60,743

Vadodara 393,227 237,767 145,880 363,174 222,577 113,266

Narmada 63,600 46,179 24,884 57,987 42,601 19,321

Bharuch 154,681 94,267 54,812 134,876 83,558 42,558

The Dangs 163,983 110,855 8,931 184,351 123,919 6,934

Navsari 81,807 55,675 52,366 73,451 51,584 40,658

Valsad 116,878 73,594 62,450 140,361 88,032 48,488

Surat 507,976 255,044 179,396 406,154 194,431 139,288

Tapi 75,920 49,042 30,195 66,615 43,881 23,444

51Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

Skill Development Opportunities(2012-22)

State is expected to witness a net addition of 20.41 lakhs and 15.85 lakhs during

2012-17 and 2017-22 periods to the labour force…

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

Incremental Manpower Supply (2012-17) Incremental Manpower Supply (2017-22)

Region Skilled Semi Skilled Minimally

skilled

Total Skilled Semi Skilled Minimally

skilled

Total

Gujarat 297,057 230,302 1,514,053 2,041,412 326,746 283,419 974,851 1,585,016

Kachchh 12,967 10,053 35,138 58,158 12,620 10,947 21,589 45,156

Banaskantha 18,257 14,154 72,471 104,882 19,267 16,712 45,455 81,434

Patan 7,103 5,506 38,583 51,192 7,890 6,844 25,013 39,747

Mahesana 10,788 8,364 60,417 79,569 12,391 10,748 38,641 61,780

Sabarkantha 12,856 9,967 67,498 90,320 13,446 11,663 45,018 70,127

Gandhinagar 7,100 5,504 40,632 53,237 8,466 7,343 25,525 41,334

Ahmadabad 34,352 26,633 132,012 192,997 37,026 32,116 80,706 149,849

Surendranagar 9,014 6,988 46,190 62,191 10,082 8,745 29,460 48,287

Rajkot 18,055 13,998 87,495 119,548 19,751 17,132 55,939 92,821

Jamnagar 8,478 6,573 55,467 70,519 9,498 8,238 37,017 54,753

Porbandar 2,973 2,305 15,380 20,659 3,496 3,033 9,511 16,040

Junagadh 13,589 10,536 71,990 96,115 16,356 14,187 44,085 74,627

Amreli 7,575 5,873 44,249 57,697 8,707 7,552 28,539 44,798

Source : KPMG Analysis

52Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

Skill Development Opportunities(2012-22)

State is expected to witness a net addition of 20.41 lakhs and 15.85 lakhs during

2012-17 and 2017-22 periods to the labour force…

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

Incremental Manpower Supply (2012-17) Incremental Manpower Supply (2017-22)

Region Skilled Semi Skilled Minimally

skilled

Total Skilled Semi

Skilled

Minimally

skilled

Total

Bhavnagar 15,146 11,742 63,832 90,720 17,220 14,936 38,281 70,438

Anand 11,034 8,554 55,774 75,362 12,221 10,601 35,691 58,513

Kheda 11,514 8,926 66,787 87,227 12,879 11,171 43,676 67,726

PanchMahals 12,734 9,873 71,201 93,808 13,553 11,756 47,526 72,836

Dohad 12,063 9,353 56,817 78,233 11,598 10,060 39,085 60,743

Vadodara 19,754 15,315 110,811 145,880 21,797 18,907 72,562 113,266

Narmada 2,790 2,163 19,931 24,884 3,124 2,709 13,487 19,321

Bharuch 7,828 6,069 40,915 54,812 9,122 7,913 25,523 42,558

The Dangs 326 253 8,351 8,931 302 262 6,371 6,934

Navsari 9,869 7,651 34,845 52,366 11,002 9,544 20,112 40,658

Valsad 12,878 9,984 39,587 62,450 11,121 9,646 27,721 48,488

Surat 23,664 18,346 137,385 179,396 32,063 27,811 79,414 139,288

Tapi 2,486 1,927 25,782 30,195 2,869 2,489 18,086 23,444

Limited supply of semi skilled workforce would indicate a need to focus on the vocational

training within the state

Source : KPMG Analysis

53Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

Skill Development Opportunities(2012-17)

Supply Demand Gap Analysis for 2012-17, highlights the need for additional supply in

semi-skilled and minimally categories within the state…(1 of 2)

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

Source : KPMG Analysis

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

Text

Text

Skilled

Semi-Skilled

Minimally Skilled

2.95 L

11.69 L

16.31 L

Labour Force Estimations for 2012-17

6.9L

8.9 L

44.71 L

4.01 L

5.17 L

25.97 L

1. Demand for Human Resource: Estimated number of additional employment opportunities created in the state based

on sectoral growth

2. Gross Addition to Working Age Population: Estimated new entrants into working age, needing some level of skilling

(minimal/semi-skilled/skilled)

3. Gross Addition to Labour Force: Portion of the Gross Addition to Working Age Population, who actively seek

employment

Gross Addition to Working Age Population

=> Total needing to be skilled 2012-17 (2)

Gross Addition to Labour Force

=> Total available for employment 2012-17 (3)Demand for Human Resource

=> New jobs created 2012-17 (1)

Supply demand gap indicates a need to improve participation rates in semi-skilled and minimally skilled

categories, along with providing vocational skills to high skilled labour force, to ensure adequate employability…

Co

ntin

ue

d (n

ex

t dia

gra

m)

54Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

Skill Development Opportunities(2012-17)

Supply Demand Gap Analysis for 2012-17, highlights the need for additional supply in

semi-skilled and minimally categories within the state…(2 of 2)

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

Source : KPMG Analysis

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

Text

Text

Skilled

Semi-Skilled

Minimally Skilled

2.95 L

11.69 L

16.31 L

2.3 L

2.97 L

15.14 L

-0.02 L

9.39 L

1.17 L

Supply Demand Gap Estimations for 2012-17

4. Net Addition to Labour Force: Gross Addition to Labour Force minus retirees – i.e. net new labour force available to

meet new human resource demand arising from sectoral growth

5. Supply of Human Resource: Difference between Demand for Human Resource (1) and Net Addition to Labour Force

(4)

Net Addition to Labour Force 2012-17

(4) = (3) – Estimated retirees

Supply-Demand Gap 2012-17

(5) = (1) – (4)

Supply demand gap indicates a need to improve participation rates in semi-skilled and minimally skilled

categories, along with providing vocational skills to high skilled labour force, to ensure adequate employability…

Demand for Human Resource

=> New jobs created 2012-17 (1)

55Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

Skill Development Opportunities(2017-22)

Supply Demand Gap Analysis for 2017-22, highlights the need for additional supply in

semi-skilled and minimally categories within the state…(1 of 2)

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

Source : KPMG Analysis

Supply demand gap indicates a need to improve participation rates in semi-skilled and minimally skilled

categories, along with providing vocational skills to high skilled labour force, to ensure adequate employability…

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

Text

Text

Skilled

Semi-Skilled

Minimally Skilled

10.27L

11.84L

34.56 L

5.96 L

6.87 L

20.07 L

2.68 L

9.34 L

14.32 L

Labour Force Estimations for 2017-22

Gross Addition to Working Age Population

=> Total needing to be skilled 2017-22 (2)

Gross Addition to Labour Force

=> Total available for employment 2017-22 (3)Demand for Human Resource

=> New jobs created 2017-22 (1)

Co

ntin

ue

d (n

ex

t dia

gra

m)

1. Demand for Human Resource: Estimated number of additional employment opportunities created in the state based

on sectoral growth

2. Gross Addition to Working Age Population: Estimated new entrants into working age, needing some level of skilling

(minimal/semi-skilled/skilled)

3. Gross Addition to Labour Force: Portion of the Gross Addition to Working Age Population, who actively seek

employment

56Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

Skill Development Opportunities(2017-22)

Supply Demand Gap Analysis for 2017-22, highlights the need for additional supply in

semi-skilled and minimally categories within the state…(2 of 2)

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

Source : KPMG Analysis

Supply demand gap indicates a need to improve participation rates in semi-skilled and minimally skilled

categories, along with providing vocational skills to high skilled labour force, to ensure adequate employability…

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

Text

Text

Skilled

Semi-Skilled

Minimally Skilled

Supply Demand Gap Estimations for 2017-22

2.68 L

9.34 L

14.32 L

-0.58 L

6.51 L

4.58 L

2.83 L

3.26 L

9.74 L

4. Net Addition to Labour Force: Gross Addition to Labour Force minus retirees – i.e. net new labour force available to

meet new human resource demand arising from sectoral growth

5. Supply of Human Resource: Difference between Demand for Human Resource (1) and Net Addition to Labour Force

(4)

Net Addition to Labour Force 2017-22

(4) = (3) – Estimated retirees

Supply-Demand Gap 2017-22

(5) = (1) – (4)

Demand for Human Resource

=> New jobs created 2017-22 (1)

57Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

Skill Development Opportunities(2012-22)

District level variations in supply-demand gap indicate the need for geography

specific initiatives to address the skilling issues…

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights ReservedProprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

Supply-Demand Gap (2012-17) Supply-Demand Gap (2017-22)

Sector Skilled Semi Skilled Minimally

skilled

Total Skilled Semi Skilled Minimally

skilled

Total

Gujarat (1,637) 939,383 116,890 915,489 (58,092) 651,365 457,174 1,067,007

Kachchh 1,326 46,100 48,944 (42,733) 159 35,366 51,289 86,813

Banaskantha (11,355) 14,068 (4,332) (1,620) (11,883) 5,133 14,094 7,350

Patan (2,896) 9,002 (11,270) (5,168) (3,955) 4,337 (1,064) (685)

Mahesana (2,179) 29,969 713 28,505 (4,499) 20,438 17,465 30,379

Sabarkantha (5,973) 19,336 (8,942) 4,416 (6,665) 12,358 5,972 11,664

Gandhinagar 13,215 55,324 3,643 72,175 8,775 41,340 12,861 62,980

Ahmadabad 4,134 139,893 66,247 210,268 (2,250) 105,400 91,935 195,078

Surendranagar (2,834) 17,243 (5,317) 9,089 (4,307) 10,729 6,240 12,663

Rajkot 792 64,624 15,601 81,018 (2,509) 49,060 33,892 80,440

Jamnagar 133 28,472 481 29,083 (1,683) 20,918 11,759 30,996

Porbandar 1,267 11,576 (4,617) 8,224 (57) 7,654 (6) 7,590

Junagadh (5,777) 22,715 (10,811) 6,127 (8,707) (11,297) 9,375 14,568

Amreli (2,225) 14,117 (12,924) (1,034) (3,816) 8,686 (1,025) 3,846

Source : KPMG Analysis* (indicate excess supply)

58Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

Skill Development Opportunities(2012-22)

District level variations in supply-demand gap indicate the need for geography specific

initiatives to address the skilling issues…

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights ReservedProprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

Supply-Demand Gap (2012-17) Supply-Demand Gap (2017-22)

Sector Skilled Semi Skilled Minimally

skilled

Total Skilled Semi Skilled Minimally

skilled

Total

Bhavnagar (332) 41,645 1,848 43,161 (3,765) 27,723 19,139 43,094

Anand (3,610) 16,009 (11,734) 658 (5,505) 8,751 2,950 6,192

Kheda (4,462) 28,316 (1,653) 22,199 (6,279) 19,037 16,015 25,223

PanchMahals (6,614) 15,347 (16,840) (8,109) (7,379) 8,708 151 1,474

Dohad (7,713) 8,767 (14,398) (13,345) (6,874) 4,179 (1,754) (4,448)

Vadodara 8,650 94,358 12,656 115,664 3,542 72,254 34,736 110,530

Narmada 238 7,741 (6,554) 1,427 (550) 5,050 (1,819) 2,681

Bharuch 3,791 40,887 23,383 68,062 1,114 31,324 32,788 63,183

The Dangs 1,910 7,493 (724) 8,678 1,748 5,951 585 8,285

Navsari (2,818) 16,674 (4,885) 8,972 (4,941) 10,175 6,168 11,404

Valsad 864 44,916 26,047 71,826 1,043 35,984 29,330 66,351

Surat 12,523 132,032 55,495 200,046 550 98,239 89,986 188,772

Tapi 172 6,451 (8,654) (2,036) (520) 4,222 (3,070) 634

Source : KPMG Analysis* (indicate excess supply)

59Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

Skill Development Opportunities(2012-22)-Scheme Based Training

Government scheme based training would augment 19 lakhs training capacity to

vocational education with SJSRY, MES, SGSY contributing to a major share…

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

Key Schemes with

Training Mandate

Estimated Training

Capacity (2012-17)

SJSRY 3,75,000

SDI-MES 3,00,000

M/O Agriculture 2,50,000

SGSY 2,00,000

Using Construction Cess 1,90,000

ISDS - Textiles 1,25,000

Others 1,15,000

D/O IT 1,10,000

ART - M/o Tribal Affairs 50,000

SCA under TSP - M/o

Tribal Affairs 30,000

Hunar Se Rozgar 25,000

CSR Funds from Central

PSUs 25,000

Credit Scheme by Banks 1,05,000

Total 19,00,000

Source : National Skill Development Mission, KPMG Analysis

Skill Development schemes from ministries need to focus on imparting demand led skill training with

robust monitoring mechanisms at various levels of implementation…

Around 20 Ministries are closely involved with skill

development initiatives either through own skill training

(done by Ministry of Labour and Employment, Ministry

of Higher Education etc) or by providing per-trainee

costs of training for specific target populations (done

by Ministry of Housing and Urban Poverty Alleviation,

Ministry of Rural Development, Ministry of Minority

Affairs etc).

National level scheme funding targets demarcated for Skill

Development are apportioned to Gujarat considering

population, industrial output, land, economic output and

social composition of population

Based on indicated cost per trainee for the identified

schemes, scheme wise training potential has been

estimated for the period 2012-17. During the five year

period 2012-17 major schemes have a potential to train

nearly 19 lakh people with SJSRY, SDI-MES and

Agricultural training program accounting for a major

share of this

60Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

Skill Development Opportunities(2012-22)-Youth Aspirations

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

Entry level salaries, work environment, job location, and socio-cultural factors, seem to influence youth

preferences towards employment.

While certain communities have established preferences for entrepreneurship in skilled/unskilled

businesses, low entry level salaries in industries is another key factor influencing youth preference.

Youth in semi urban and rural areas have expressed higher level of inclination towards entrepreneurship

than their urban counterparts due to above mentioned reasons.

Preference for

Employment Vs

Entrepreneurship

Youth from certain communities have aspirations of migrating to US, UK and Middle Eastern countries

for jobs, others from industrially less advanced areas are open to migrating to Surat, Ahmedabad, Kutch

and Bhavnagar within Gujarat for better employment prospects.

While industrial belts have the potential to absorb and employ migrants, preference for centrally located

regions like Ahmedabad, Vadodara clusters is high over far away regions like Kutch.

Migration

Youth seem to show higher inclination for jobs in Govt/Govt Undertaking Sectors like Railways, GEB,

IOCL, NTPC and other PSUs. However, considering the limited opportunities in these segments, private

sector jobs offering high job security (Large Corporate like Tata, Reliance, Adani) are the preferred

option for youth in private sectors. The salary differences in the private sector are perceived to be not

very high across different companies, for blue collar jobs.

Preference for

government jobs over

private

Regional considerations along with work place environment and salaries have significant influence on

preferences for sectors

Sectoral Preference

for Employment

61Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

Skill Development Opportunities(2012-22)

Logistics, Financial Services, Hospitality &Tourism, Auto and Retail sectors are

high on employment potential as well as aspirational value for youth…

Skill Development Attractiveness in GujaratTransportation &

Logistics

Banking & Financial Services

Hospitality & Tourism

IT-ITES

Retail

Healthcare

Focus Sectors*

*Employment growth opportunities and youth aspirations towards working in

the sector are the criteria for identifying focus sectors for the state

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

Low High

Low

Source: KPMG Analysis

Hig

h

Incre

menta

l m

anpow

er

pote

ntial in

MP

Youth aspiration for sectoral employment

Agriculture allied

activities Hospitality &

Tourism

Healthcare

Retail

IT-ITES

Education and skill

development

Wood & wooden

products

Banking & Financial Services

Construction

Textile

Chemicals

Rubber & plastics

Transportation &

Logistics

Drugs & Pharma

Auto- Auto

Components

Food Processing

Manufacturing of

Machinery

Auto - Auto Components

62Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

Skill Development Opportunities(2012-22)

Port based logistics in the coastal districts of Gujarat is expected to witness

significant manpower requirement in the next decade…

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

Kachchh

(43,081)

Gandhinagar

(22, 500)

Ahmedabad

(2,45,715)

Jamnagar

(36,799)

Bhavnagar

(46,465)

Anand

(18,342)

Bharuch

(22,009)

Surat

(1,68,856)

Transportation & Logistics Incremental Human

Resource Requirement, 11.69 lakhs (2012-22)

Source: KPMG Analysis

Sector Growth Outlook

Transportation & Logistics industry is predominantly dominated by port

based logistics, with road logistics expected to witness considerable

boost along DMIC corridor region.

Gujarat port based logistics industry, predominantly consisting of

private ports is expected to sustain the growth witnessed in cargo

handling capacities of private ports (24% CAGR between 2006-07 to

2011-12) during 2012-22. The sector has witnessed MoUs of INR

102,899 Cr during 2011 Vibrant Gujarat Summit, expected to increase

the cargo handling capacities by 660 million tonnes by 2015-16

Accounting for 38% of total DMIC corridor length with an estimated

investment potential of 28 billion USD, state has significant growth

potential for road based logistics in Ahmedabad, Dholera, Surat

regions

Skill Requirements for Port Based Logistics Industry

Core Skills Electrical Technician(Distribution,Cabling, Instrumentation, Maintenance,

Automation, PLC, HMI Equipments), Mechanical

Technician(Lubrication,Hydraulic Systems,Pneumatic Systems,Gear

Systems), Crane Operators, Conveyor Belt Operators, Eartmoving Equipment

Operator, Locomotive Engine Operator, LMB Driver, HMB Driver, Machine

Operators(MVU,Baking,Sticker Reclaimer)

Allied Skills Skilled Fireman, Radio Officer, Under water divers, Un-skilled Marine Crew,

Project Management Workforce (Surveyor, Draftsman Civil, Construction

Workers, Auto CAD Engineers)

Skills with

Acute Shortage

Marine Engineers, Instrumentation, Advanced Equipment Technicians,

Crane& Machine Operators, Radio Officer , Skilled Fireman

Focus districts account for nearly half of the

state sectoral manpower requirement during

the period 2012-22…

63Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

Skill Development Opportunities(2012-22)

IT/ITES Special Economic Zones proposed in Ahmedabad, Vadodara and Valasad

would drive the investment growth in the state…

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

Source: KPMG Analysis

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

Gandhinagar

42,000)

Ahmedabad

(76,000)

Rajkot

(30,400)

Surat

(57,000)

Valasad

(12,800)

Vadodara

(72,000)

IT-ITES Incremental Human Resource Requirement,

3.8 lakhs (2012-22)Sector Growth Outlook

Conducive policy thrust through special infrastructure and fiscal,

non fiscal incentives for the IT units is expected to spur the growth

of IT industry in Gujarat during 2012-22

Sector has received 19 Memoranda of Understanding (MoU) worth

Rs 46,007 crore during Vibrant Gujarat Summit 2009 and in 2013,

15 MoUs have been signed with IT-ITES players, highlighting the

promising investment trends in the sector

Availability of skilled manpower from technical education institutes

(seat capacity of 1.1 lakhs, engineering & diploma) is a key

advantage for the state to drive the growth of IT and IT Enabled

Services industries

Ahmedabad, Vadodara, Gandhinagar and Valasad districts with

proposed IT sector SEZs, are expected to witness significant

human resource requirement in the state during 2012-22.

Skill Requirements

Core Skills Programming, IT Platform knowledge

Allied Skills IT BPO, Communication Skills

Skills with Acute Shortage Online Marketing, Cloud computing, English BPOFocus districts account for nearly three

fourths of the state sectoral manpower

requirement during the 2012-22 period…

64Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

Skill Development Opportunities(2012-22)

Government thrust on the sector, has helped the emergence of Auto clusters like

Sanand in the state - creating a demand for skilled workforce…

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

Kachchh

(15,981)

Ahmedabad

(35,500)

Surat

(6,981)

Vadodara

(10,768)

Auto-Auto Components Incremental Human

Resource Requirement, 1.12 lakhs (2012-22)

Source: KPMG Analysis

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

Sector Growth Outlook

Gujarat is expected to lead the industrial growth of Auto-Auto

components riding on

Conducive policy thrust through tax holiday in auto cluster

Sanand region, along with availability of land

Connectivity by port, rail, road network for Auto cluster through

DMIC corridor

Strong investment trend - INR 2,500 Cr (Tata), INR 4,000 Cr

(Maruti), INR 2,500 Cr (Peogot) and INR 4,000 Cr (Ford) from

major auto companies

Proposed plans of Renault-Nissan, Honda Motorcycles, Bajaj

Auto and Hero MotoCorp, AMW for expansion in Gujarat.

Presence of OEMs in Sanand Auto cluster is making the region an

emerging as a destination for the growth of Auto and ancillary industries.

Skill Requirements

Auto Assembling and

Component

Manufacturing

Core Skills: Motor Mechanic, Diesel Mechanic, Fitter, Welder,

Fabricators

Allied Skills: Electrician, Wireman

Acute Skill Deficits: Specialized welders in Arc welding who can

work in extreme conditions on advanced fabrication equipments

Auto Manufacturing Core Skills: Shop floor technical workers

Allied Skills: Maintenance(Mechanical, Electrical, mechatronics,

automobile electronics)

Acute Skill Deficits: Painting, Body Building (spot welding), Sheet

Metal Work, Machining & Casting.

Focus districts account for nearly 60 percent

of the overall state sectoral manpower

requirement during the 2012-22 period…

65Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

Skill Development Opportunities(2012-22)

Higher private participation in healthcare around urban clusters would drive need for

healthcare professionals in Gujarat…

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

Ahmedabad

(12,709)

Rajkot

(14,136)

Surat

(6,234)

Vadodara

(14,441)

Healthcare Incremental Human Resource

Requirement, 1.62 lakh (2012-22)

Source: KPMG Analysis

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

Sector Growth Outlook

Healthcare industry in Gujarat is witnessing significant boost with

the emergence of India as a destination of healthcare tourism

While primary healthcare facilities across urban, semi urban and

rural areas is predominantly driven by public expenditure towards

capacity expansion, tertiary healthcare services segment is

providing scope for private investments into the sector

Vibrant Gujarat 2011 has attracted investments to the tune of INR

15,600 Cr into the sector for 3 Medicity Projects, 21 Multi

Specialty Hospital Projects and 5 Medical Colleges with hospitals

Booming medical tourism would result in the growth of private

investments into urban clusters of Ahmedabad, Vadodara, Surat

and Rajkot, and create significant need for skilled healthcare

workers in these districts.

Skill Requirements

Core Skills MBBS Doctors, MD/MS specialists,

Physician Assistants/Compounders,

Radiologists, Dialysis technician, Respiratory

technician and OT Assistants & Perfusionist.

Allied Skills Lab technicians, pharmacists

Skills with Acute Shortage Physiotherapists, Biomedical Instrumentation

technicians

Focus districts account for 30 percent of

state sectoral manpower requirement in

2012-22. Hence the demand for skilled

personnel will be quite spread out across

other districts too…

66Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

Skill Development Opportunities(2012-22)

Pilgrimage and wildlife tourism along with increasing business related tourism would

fuel need for additional manpower in tourism and hospitality…

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

Kachchh

(38,862)

Gandhinagar

(23,238)

Ahmedabad

(58,122)

Junagadh

(15,858)Surat

(44,622)

Vadodara

(28,944)

Hospitality & Tourism Incremental Human Resource

Requirement, 4.48 lakhs (2012-22)

Source: KPMG Analysis

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

Sector Growth Outlook

Gujarat has witnessed strong growth in the tourism industry with an 85

percent growth in tourist arrivals from 2005-2011.

Government has levied enough thrust on the sector by enhancing the

allocation towards tourism sector from 183 crore in FY11 to 200 crore in

FY 12.

High growth regions for hospitality and tourism include:

• Business tourism - Ahmedabad, Gandhinagar, Surat, Jamnagar,

Vadodara, Rajkot and Kutch

• Religious and spiritual - Dwarka, Somnath and Akshardham Temple

at Gandhinagar

• Wildlife – 4 National Parks and 21 Sanctuaries

• Beaches – Long coastline along Ahmedpur Mandvi and Surat

• Hill Stations – Saputara and Pavagadh

• Heritage Sites – World Heritage Site at Champaner, archaeological

sites at Kutch and historical forts at Junagarh

• Rural tourism site – Kutch

Skill Requirements

Hospitality Front Desk Executives, Room Service.

Chefs, F&B production assistants

Tourism Tour Guides, Travel Booking Executives

Focus districts account for nearly 46 percent

of state sectoral manpower requirement

during the 2012-22 period…

67Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

Skill Development Opportunities(2012-22)

Sector specific SEZs like Ahmedabad Financial City and increasing penetration of

financial services would drive employment growth in the sector…

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

Gandhinagar

(21, 355)

Ahmedabad

(24,276)Jamnagar

(19,009)Rajkot

(18,967)

Surat

(15,412)

Vadodara

(23,307)

Source: KPMG Analysis

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

Banking & Financial Services Incremental Human

Resource Requirement, 5.13 lakhs (2012-22)Sector Growth Outlook

Banking and Financial Services industry in the state is

expected to make significant strides over the next decade

from the current levels of low penetration (One bank

branch per 15,872 people in Gujarat as against national

average of 13,379)

Overall business size of scheduled banks (Deposit base of

INR 3,06,113 Ct and credit of INR 2,13,447 Cr as on

March 2012) indicates potential opportunity for the growth

of NBFC services in Gujarat.

Growth of NBFCs and financial service enterprises is

expected in urban clusters of Ahmedabad with affluent

population base and emerging infrastructure facilities like

Ahmedabad Financial City

Skill Requirements

Core Skills Knowledge on core banking/mobile/internet

platforms

Allied Skills Sales & Marketing

Skills with Acute

Shortage

Insurance underwriting, claims management

Focus districts account for only 24 percent of the

state sectoral manpower requirement in 2012-22.

Hence the demand for skilled personnel will be

quite spread out across other districts too

68Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

Skill Development Opportunities(2012-22)

Penetration of organized retail is expected to be concentrated around urban clusters

of Ahmedabad, Surat and Vadodara…

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

Ahmedabad

(54,049)

Jamnagar

(16,190)

Rajkot

(28,492)

Surat

(45,584)

Vadodara

(31,175)

Retail Incremental Human Resource Requirement,

4.52 lakhs (2012-22)

Source: KPMG Analysis

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

Sector Growth Outlook

Penetration of organized retail in the state would receive

significant boost with the retail houses expanding into tier-II

towns beyond urban regions of Ahmedabad, Vadodara, Surat,

Rajkot and Gandhinagar.

Urban regions of Ahmedabad, Gandhinagar, Surat, Vadodara

are expected to witness tremendous growth of malls over the

next decade with players like Champion Agro, Future Group and

ACIL Cotton Industries, Food Bazaar, Reliance Fresh and

Spencers along with apparel retail brands leveraging the retail

infrastructure in the state

While the state has taken a stand to oppose FDI in retail,

industry has been able to garner significant investments.

Further, with INR 17,000 Cr investments into realty sector in

2013, organized retail is expected to gain a large share of

developed infrastructure

Growth of organized retail would generate employment across

the value chain for sourcing in rural/farming clusters

Skill Requirements

Core Skills Shop floor executives/supervisors,

computer operator

Allied Skills Transportation & logistics staff

Skills with Acute Shortage Store management, stock planning

Focus districts account for nearly 40 percent

of the state sectoral manpower requirement

in 2012-22. Significant employment would be

generated in tier-II and rural areas for

sourcing and supply chain related

activities…

69Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

Contents

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

Study Objectives1

Methodology 2

Socio Economic Analysis of the State3

Education and Training Infrastructure 4

Skill Development Opportunities5

Challenges in Skill Development6

Recommendations7

Gujarat

70Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

Challenges in Skill Development

Continuing demand supply gap in education system is a key challenge for the state…

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

While higher education capacities have registered significant growth, considering the low

base, the gap continues. Capacity gaps along with affordability, are key reasons for drop

outs either during schooling years, or just after schooling - especially in tribal and

economically backward districts

If the GER targets for India (30% by the end of 12th plan period 2012-17) have to be

matched, the current higher education capacity in Gujarat has to be nearly doubled by 2017

Continuing Demand-

Supply Gap leading

to after school

dropouts

Gujarat being a leading manufacturing hub has to lay enough emphasis on improving

penetration of vocational education.

Comparison of the ratio of higher education to vocational education capacities (around 1:1

in Gujarat) with other manufacturing economies like Germany (around 1:2) having high

penetration of vocational education, indicates that in order to sustain the growth –

especially in the manufacturing sector - Gujarat has to lay enough emphasis on vocational

streams

Low Penetration of

Vocational Education

Densely populated industrial clusters of Ahmedabad, Vadodara, Surat and Rajkot have

significantly lower penetration of vocational education(Refer Appendix for detailed

regional analysis of training capacities)

Special incentive schemes for private training players could be implemented in

geographies with low penetration of vocational education

Regional imbalances

in Training Capacities

71Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

Challenges in Skill Development

Limited working level coordination among the skill development bodies is hampering

the prospects for achieving comprehensive skill development in Gujarat

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

PPP schemes implemented by department of labour and employment for private adoption

of ITI s has not taken off along expected lines with only limited number of ITI s in PPP

mode under operation. Non availability of industry ready curriculum for training in these

institutes is a major hurdle for promoting private participation .

Remote location of GIDC centers where the SDCs/SUCs are granted land, is seen as a

major challenge to mobilize youth for training.

Challenges in the

implementation of

PPP Schemes

While Anchor institutes have been given a large mandate, limited funding (10 Cr per

sector) is a challenge to achieve the desired functional goals of the initiative. Also these

institutes running as fully funded entities with no source of additional revenue, will have

limited resources at their disposal.

Anchor institutes could be transformed into regional sector skills councils to play the role

of extended arm of national sector skills councils in Gujarat.

Limited Operational

Scope for Anchor

Institutes

Gujarat Skill Development Mission, Anchor Institutes and Gujarat Skill Development

Corporation have independent functioning currently even though the bodies share certain

common goals towards promoting skill development and training in the state.

Better operational and strategic coordination among these three bodies would help in

developing a comprehensive skill development strategy for the state

Need to bring

synergies among

nodal bodies

72Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

Challenges in Skill Development

Lack of uniform standards across training institutes is leading to unemployment of

trained youth due to set industry preferences…

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

While the Gujarat is expected to witness significantly high requirement for skilled workers

in Textile, Construction, Agriculture and allied activities in future, youth aspirations for

work indicate an inclination for white collar jobs predominantly in service based industries.

Sectors with high manpower needs and low youth aspiration needs to formulate strategies

to attract workforce either from within the state or from outside

Misalignment of

youth aspirations

with employment

opportunities

Lack of uniform training and evaluation standards leads to various issues ranging from

limited acceptability of certain training certifications in industry, to misalignment of training

with industry needs. Currently, NCVT & GCVT courses are being offered in ITI s/ ITCs,

while private training institutions/ industry led training bodies offer individual certifications.

There is a need to bring in uniform standards across institutes in order to achieve uniform

quality of training and certification.

Lack of uniform

training and

evaluation standards

While GSDM and other skill development monitoring agencies have been operational at a

state level, grass root level implementation and monitoring needs to be made effective

with adequate decentralization.

Limited systems to

achieve gross root

level monitoring of

schemes

73Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

Contents

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

Study Objectives1

Methodology 2

Socio Economic Analysis of the State3

Education and Training Infrastructure 4

Skill Development Opportunities5

Challenges in Skill Development6

Recommendations7

Gujarat

74Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

Recommendations

Government

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

1. Systematic mechanisms to identify and assist potential school dropouts transition into vocational programs

Scheme Objectives:

• In Gujarat, currently less only one-sixth of students move on to Higher Education. Students likely to opt out of

school education, should be proactively identified and brought into the fold of the vocational education system

• Integrate vocational courses in school curriculum to equip students with industry relevant skills, as well as skills for

starting businesses and self-employment. This will also ensure reduction in dropout rates

• Establish Systems for Integrated Learning with Industry through Multi Level (4 Levels) learning structure, where

Level 1 and 2 trainings are provided in school, and supplemented by Level 3 and 4 trainings in industry

Implementation:

• Class 9th To 12th should be the focus, considering low transition levels from secondary to higher secondary (38%)

• Districts with high capacity gaps in secondary and higher secondary systems- Anand(86%), Bhavnagar(78%),

Kutch(77%), Porbandar(73%), Banas Kantha (73%)and Narmada (72%)

• Focus on sectors that are high preference as well as high growth sectors of Gujarat (Auto-Auto Components,

Banking & Financial Services, Hospitality & Tourism, Organized Retail, IT-ITES, Transportation & Logistics )

• Upon successful completion of Level 1 and Level 2, candidates can join industry for Level 3 and Level 4 learning

within the industry, or opt for self employment opportunities

Scheme Enablers:

• Vocational modules for schools need to be standardized to ensure uniform learning outcomes for Level 1 and 2

courses in schools. Local Industry collaborations can be established for Level 3 and Level 4 trainings to students

• Considering the shortage of faculty for vocational education, the School Education Department can fund/create

systems for Training Trainers for vocational modules In Schools, through the it is and industry

• Support for Entrepreneurship of trained candidates through tie-ups with Financial Institution(Banks, NBFCs)

75Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

Recommendations

Government

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

2. Develop the Gujarat Skill Development Mission in line with its charter, as a focal agency for skilling

Define the strategic road-map for skill-development in the state for the next decade (2012-17, 2017-22), in close

consultation with other key departments, and central skill development agencies such as the NSDC, considering the

district level skill gap projections. Strategic roadmap would outline the skill development agenda for the state:

Vocational training capacity building (sector/district level)

Fund allocation plans

Proposed systems to monitor the effectiveness of various training initiatives

Schemes/ structures to garner private participation in the state

Decentralize implementation and monitoring of skill development initiatives through dedicated SDM chapters at

sector level ( For focus sectors- Transportation & Logistics, IT/ITES, Auto-Auto components, Banking & Financial

Services, Retail, Healthcare and Hospitality & Tourism) and district level. Suggested representations:

Anchor Institutes, SSCs, training institutes, industry bodies and key industries for sector level SDM chapters

Local industries, training institutes, representatives of Government departments for district level SDM chapters

Leverage on SSC certificated courses and standards that are being developed centrally, especially in the high

aspiration/ high potential focus sectors (mentioned above), and facilitate adoption in the state

76Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

Recommendations

Government

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

3. Focus On Enhancing Skill Training Capacities In Districts With Low Penetration Of Vocational Education

Focus on districts with low penetration of vocational education(seat capacity per population) - Kutch, Vadodara, Patan,

Jamnagar, Anand, Valsad, Banas Kantha, Rajkot, Ahmedabad, Narmada, Bhavnagar, Surat and Porbandar for capacity

expansion through public investments/ special schemes to promote private participation through PPP

Revalidate the existing PPP schemes considering the challenges in implementation of existing schemes (Refer to

section on challenges in skill development initiatives) under

Industries Department (CED)

Labour & Employment Department

Other Departments focused on specific industry sectors (Textile, IT-ITES etc.,)

Fast-track the NSDC/SSC affiliated partners to setup training in these districts using subsidized govt. infrastructure

(GIDC etc), by waiving off detailed due-diligence, as NSDC partners are pre-approved through rigorous due diligence

4. Setting up Anchor Institutes in more focus industries, and broadening their scope

Considering the high potential / aspirational value for sectors of Transportation & Infrstructure, IT-ITES, Retail,

Healthcare, Banking & Financial Services, Hospitality & Tourism, new anchor institutes can be setup for research and

faculty training. They can champion adoption of SSC standards & curriculum, and localize it as required (language etc)

77Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

4. Setting up Anchor Institutes in more focus industries, and broadening their scope

Considering the high potential / aspirational value for sectors of Transportation & Infrstructure, IT-ITES, Retail,

Healthcare, Banking & Financial Services, Hospitality & Tourism, new anchor institutes can be setup for research

and faculty training. They can champion adoption of SSC standards & curriculum, and localize it as required

(language etc)

5. Engagement with Sector Skills Councils

Given the high potential as well as aspirational value of the sectors of Transportation & Infrstructure, IT-ITES, Retail,

Healthcare, Banking & Financial Services, Hospitality & Tourism, the state government can engage with the sector

skills councils set up, or in the process of being set up, in these sectors. NSDC has been creating capacity in sector

skills councils, and the state government can have an engagement with them

Recommendations

Government

78Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

Recommendations

NSDC & SSCs

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

1. Developing Curriculum and Standards for Focus Sectors/ Vocational Courses in Schools

SSCs can facilitate development of standardized curriculum that can be designed into four levels (as per practice

in some developed countries), where the first two levels are adopted at 9th -12th levels of school education, and

the next two levels are provided in industry. The districts of Gujarat where the Higher Education transition is low

(Anand, Bhavnagar, Kutch, Porbandar, Banas Kantha and Narmada), are of particular focus for implementation

of the first two levels of courses within schools

SSCs to develop certification standards for high growth/aspirational value sectors of the state - Transportation &

Infrastructure, Auto & Auto Components, IT-ITES, Retail, Healthcare, Banking & Financial Services, Hospitality

and Tourism.

2. Promoting Private Sector Participation in Focus Sectors & Supply Clusters

Encouraging NSDC Partners to enhance training capacities in the state by focusing on

High growth sectors of the state - Transportation & Logistics, Auto & Auto Components, IT-ITES, Banking &

Financial Services, Tourism & Hospitality, Healthcare and Retail

Districts with lower penetration of training infrastructure coupled with high industry growth - Kutch,

Vadodara, Rajkot, Ahmedabad, Bhavnagar, Surat

79Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

Recommendations

Industry

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

1. Participation in Education and Training

Aligning CSR Goals (especially mandatory 2% CSR requirement) towards skilling, and play an active role in

PPP initiatives. Share annual plan of recruitment with government and industry nodal agencies for skilling

Support training institutes in development/delivery of programs

Excess production capacity/equipments can be shared with institutes during lean production hours/shifts

Support Training of Trainers (TOT) allowing skilled employees to be trainers for fixed no. of hours, for ITI

faculty, school faculty etc involved in vocational training

Policy to encourage apprenticeships and internships of vocational & ITI students

Provide used infrastructure at subsidized costs to academic institutions

Support in providing level 3 and level 4 training for students with level 1 and level 2 certifications at

schools (Refer to recommendations on vocational programs in schools)

Participation in development of curriculum for specific trades not available in ITIs/VTPs right now

Align recruitment policies to ensure hiring certified manpower from Govt/SSC accredited training institutions

Invest in up-skilling of existing manpower and formulate formal HR policies and mechanisms to encourage

employees to train in institutions

80Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

Recommendations

Training Organizations

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

1. Recommendations for Private Training Institutions in Gujarat

Focus on high growth/ aspirational value sectors where student acquisition is easier -Transportation & Logistics, IT-

ITES, Banking & Financial Services, Healthcare, Auto & Auto Components, Tourism & Hospitality and Retail

Create capacities in districts with lower penetration of training infrastructure - Kutch, Vadodara, Patan, Jamnagar,

Anand, Valsad, Banas Kantha, Rajkot, Ahmedabad, Narmada, Bhavnagar, Surat & Porbandar. Districts where low

penetration of training infra is coupled with high industry growth, are high potential for future growth of skilling

Explore scheme-based training potential to address the skilling needs of under privileges/BPL population - key

schemes with high training potential are SJSRY, MES, SGSY, Textile Department and Construction Cess

Emphasize on offering accredited programs (SSC certifications) to ensure industry acceptance for certifications

Leverage existing infrastructure to build optimal delivery models (ITI premises, GIDC space where offered, industrial

space during lean production hours etc)

Build industry linkages in areas of development and delivery of training programs- placements, curriculum

formulation, apprenticeships, faculty training

Engage credible local networks (SHGs, NGOs, student groups such as UDISHA groups) for student acquisition

81Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

Appendix

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

82Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

Best Practices in Skill Development

Australia has successfully implemented vocationalization of school education and

employer collaboration which can be replicated globally…

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

AUSTRALIA

• Australian schools are permitted to offer some vocationally-oriented education subjects

in addition to the normal school curriculum.

• This initiative has helped Australian education system through

– Providing industry responsive and flexible approach to meeting different learning

needs of students

– Eradicating long-standing, stereotyped views about the ‘superiority’ of academic

learning compared to vocationally-oriented learning.

Vocational

Courses in K-

12 Schools

• E-learning was perceived as beneficial for both students and training providers. This was

particularly the case in the Australian context of large distances between urban areas,

the difficulty of training/studying in remote areas, and the economic and social

imperative of reducing the urban/rural divide

E- Learning in

Vocational

Education

• Middelburg - Toyota Motor Company provides equipment for training motor vehicle

mechanics, has developed a modular training course for interested learners and

appoints teachers to provide training at Middelburg Higher Technical School (MHTS)

outside school hours.

• Salient features of the program include

– Learners pay an additional fee for the training, and teachers are paid out of these

funds

– Learners do the first modules in the series and once they complete their schooling,

can apply for employment at Toyota, where they can complete the remaining

modules as employees.

– Learners who achieve 80% or more, receive a certificate which states the modules

completed and entitles certificate holders to apply for a position at any Toyota

dealer across the country

Corporate

Collaboration

with Institutes

Vocational Courses in K-

12 Schools

E- Learning in

Vocational Education

Corporate

Collaboration with

Institutes

Source: KPMG Analysis

83Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

Best Practices in Skill Development

Switzerland has addressed the issues of school drop outs through proactive

vocational training approach in schools…

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

AUSTRALIA

• Introduction and Encouragement of Vocations Education at School level specifically for

students at the risk of dropping out or being unemployed. Salient Features of the

program include

– Targeting young people at risk of dropping out of school/and or becoming

unemployed.

– Project consists in the introduction of a case management model to aid the

transition of academically weak or socially disadvantaged young people from

lower to upper secondary education.

– Approach: i) it applies to the transition period from Lower to Upper secondary

Level 2, and ii) it is preventive rather than reactive in its aims.

– Process: As soon as a young person is identified as being at risk of dropping out

of school the service will be activated; this will consist in appointing a case

manager to work with the young person, who will ensure that appropriate

measures are taken, in collaboration with all relevant services – career guidance,

mentoring, counseling, housing services, etc - and the young person him/ or

herself. It is important therefore to emphasize that the case manager does not

work directly with a student in a „mentoring‟ or „coaching‟ capacity; their role is

rather that of a manager or co-coordinator of the whole process. This initiative has

helped Australian education system through

Vocational

Education

for Potential

School

Dropouts

• Leading Houses are set up coordinate at a national level the research efforts on

VET/PET and making them responsive to the country’s needs and priorities in this

domain.

• These are designated centres of expertise, located in universities, whose main mission

is to build a competence network to conduct research on their own account, grant

research contracts and promote young research talent, while being well connected

internationally.

Sector Level

Competency

Building

Vocational Education for

Potential School

Dropouts

Sector Level

Competency

Building

Switzerland

Source: KPMG Analysis

84Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

Best Practices in Skill Development

Countries like Germany and Switzerland have achieved significant private participation

through conducive ecosystem…

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

AUSTRALIA

• Rebranding Vocational Training :South Korean government attempted to make vocational education more

attractive by changing the name of ‘vocational high schools’ to that of ‘professional high schools’ with an aim to

rebrand the way student and society perceive this course .

• Creating Centres of Excellence : In South Africa, the 152 technical colleges in the country were reduced to 50

Further Education and Training (FET) colleges, through a process of merger. The new multi-site ‘mega’ colleges

comprise campuses within a relatively close geographic locality, depending on the geographic profile of the

province. In each merged college, previously disadvantaged colleges were integrated with previously advantaged

colleges, and a process began for better utilization of resources.

• Focus on Enhancing Private Participation: In Germany and Switzerland, public funding of vocationally-oriented

and vocational education amounts to only about 55% of all funding of this sector, while private funding makes up the

balance.

• Special Vocational Training Fund: Denmark Government has setup Central fund to support analysis and

projections related to new emerging fields and occupations and giving power to the Ministry of Education to initiate

new education programmes covering trades or occupations not covered by the trade boards.

• South Africa’s second National Skills Development Strategy (2005-2010) attempted to move from setting SETAs

input-focused targets, which had led to attempts to increase learner numbers without measuring impact, towards

outputs-focused targets, such as quality and impact. South African SETAs are unique in catering to all employees

within a single company, from support services to production staff to management. SETAs therefore have a cross

sectoral element and often have to engage in partnership working with other SETAs

• The initial incarnation of New Zealand’s Retail Industry Training Council attempted to engage employers through

attempts to increase and improve in-house training. This attempt failed – many felt they were already providing good

quality training. The second incarnation of the Retail ITO instead offered accreditation of workplace training and

recognition of prior learning, which led to more successful engagement .

Rebranding Vocational

Education

Special Fund for

Vocational Education

Source: KPMG Analysis

Global Best Practices

Focus on Enhancing

Private Participation

85Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

Best Practices in Skill Development

Sector Skill Bodies have emerged to play crucial role in the skilling ecosystem at

national/state level…

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

AUSTRALIA

Sector Level Skill

Development Bodies

Source: KPMG Analysis

Global Best Practices

Various Counties, including India have set

up Sector Skill Bodies to foster skills

development and workforce development

within different industry sectors with an

objective to modernize vocational

education and training systems by

bringing together industry representatives

with other stakeholders, ‘formally

bridging the gap between education

provision, vocational training and the

labour market’

Employer Involved Model Sales outlets

Australia

Canada

UK

New Zealand

France

South Africa

Singapore

Employer Owned Model Employer Driven Model

Hong Kong Netherlands

USA

Principal Sector Bodies Activities by Country

Key considerations for setting up a nation level/ state level which can highlight effective sector skill approach

Employers need to be engaged to identify skills needs and design relevant competencies.

Employees need to be engaged in the system and in identifying skills needs, which secures legitimacy among workers.

Financial incentives are widely used.

Public funding could be used as a lever to ensure that long-term policy objectives are considered by sector bodies.

(A portion of) public training funds need to be channeled through sector bodies.

Differences in approach, systems and priorities between local/state and national/federal government are recognized, and

steps need to be taken to manage these differences.

86Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

Thank You

Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

Narayanan Ramaswamy

Head – Education Advisory

KPMG India

+91 (44) 3914 5200

email: [email protected]

Akhil Krishna

Associate Director– Education Advisory

KPMG India

+91 (80) 30654479

email: [email protected]

Gaurav Kumar

Associate Director– Education Advisory

KPMG India

+91 (124) 43075203

email: [email protected]

87Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.Proprietary and Confidential. This information does not represent and should not be constructed as legal or professional advice ©2013 NSDC. All Rights Reserved

For more details please contact:

National Skill Development CorporationBlock A, Clarion Collection, (Qutab Hotel)Shaheed Jeet Singh MargNew Delhi 11 0 016Tel : +91-11-47451600Fax : +91-11-46560417Email : [email protected]

www.nsdcindia.org